Tim Draper and the team at Draper Goren Holm Ventures, a VC fund focused on blockchain startups, announced today they have purchased a stake in the DMM DAO, the governing organization of the DeFi Money Market (DMM) Protocol. The stake was purchased in the form of DMG — the soon-to-be-released governance token that will run the DMM DAO.
The DMG token will offer holders the right to vote and direct the system that bridges the gap between real-world assets and the new on-chain economy. Additionally, its holders will have a claim on positive income streams between mAsset payments and the real-world assets income payments. The Foundation envisions these positive income streams being used in a variety of ways, like funding further loans, capitalizing related assets, or otherwise growing the ecosystem. The DMM Foundation plans to auction a portion of these DMG tokens via dutch auction on the DutchX soon (the specific date is to be announced).
DMM Protocol acts as a bridge between Ethereum digital assets and real-world assets allowing holders to earn interest completely on-chain. DMM DAO is the governance arm of the protocol; which provides users with stable 6.25% earned interest on DAI and USDC. DMM recently launched using Chainlink’s secure oracles to validate and make viewable the asset backing on-chain.
“We have been working in stealth mode with the team at DeFi Money Market Foundation for half a year; and we’re excited at their recent launch. They are a team with deep domain expertise in DeFi and Fintech and proven builders of innovative technology platforms. We look forward to helping them expand the DeFi Money Market globally.”
– Alon Goren, Managing Partner at Draper Goren Holm
At the time of publishing, there is roughly $138 billion in cryptocurrencies, $17 trillion of negative-yielding debt globally (more than 25% of global investment grade debt); and $90.4 trillion of physical money in the world earning little, zero, or even negative interest. The DMM Protocol is a simple and elegant interface that enables anyone to earn 6.25% backed by real-world assets through the DeFi Money Market app.
“We are really pleased to be working with Tim, Alon, and Josef in building this new financial product; the DeFi Money Market (DMM) which allows any holder of an Ethereum digital asset; and soon any holder of fiat currency, to earn 6.25%. We think this makes earning stable, passive interest income once again a reality.”
– Gregory Keough, from the DeFi Money Market Foundation