Some blockchain projects solve particular problems, others solve general problems. It usually makes sense for investors to focus on the latter because the addressable markets are, by definition, larger. However, on occasion there are solutions to particular problems that open up opportunities for the industry as a whole and change the paradigms by which we move forward.
Such is the case behind Rarestone Capital’s recent investment in XFai, a decentralized oracle service provider. The crypto-focused venture capital firm is dedicated to supporting ambitious Web3 projects with not just the necessary funds, but access to the right talent, advisors, and industry connections. Its previous investments include APY.Finance, Qredo, and Terra Virtua.
The reason behind backing XFai comes from its solution to a problem of information asymmetry between centralized and decentralized exchanges and its exciting roadmap of tooling for the DeFi space. To start, the team has built a DEX Liquidity Oracle, or DLO, which uses a sophisticated smart contract infrastructure to manage liquidity between the two beyond just providing regular price feeds. XFai’s game changing white paper shows that this “allows ‘small cap’ token holders to earn token-denominated returns on autopilot,” solving a liquidity issue that affects most up-and-coming blockchain initiatives and their token holders.
Camron Miraftab, co-founder of Rarestone Capital, shared his thoughts on the investment.
“At Rarestone, we are delighted to back a diverse and multi-talented team taking on a mission to improve overall market efficiency in DeFi. As an early-stage investor and supporter of emerging blockchain-enabled businesses and crypto-native protocols, we have the first-hand experience of having to deal with market and liquidity inefficiencies and the resulting constraints it creates for investor participation, product adoption of new decentralized solutions, and the overall composability of DeFi.
He added that, “XFai’s approach to synchronising liquidity and optimising price discovery with its thoughtfully architected product line is, in our view, truly a first-of-its-kind. Rarestone is excited to be supporting XFai’s team of builders in embarking on its vision to make DeFi a fairer and more fertile playing field.” — Camron Miraftab — Rarestone Capital
Rarestone Capital as well as holders of XFai’s native $XFIT token will be part of a particular solution that widens the opportunities in DeFi for small cap tokens. The token will be available on April 8 through an innovative new funding model known as a Liquidity Generation Event.
About XFai
XFai develops tooling for the DeFi space, graphing it to build game-changing products. The XFai DLO is set to invite mid and small-cap tokens to start earning APY on their token holdings, while the XFai LGE is set to become industry-first in providing a more efficient, transparent, and fair way for everyone to get involved at an early stage. The LGE for XFai’s native token, XFIT, is set to launch on 8th April 2021. We invite everyone to join the DeFi revolution, spearheaded by XFai.
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