Some major venture capital letter names are 'sett' to bring together the Badger DAO customs.

Bitcoin on Ethereum-focused decentralized finance (DeFi) protocol Badger DAO appear today a $21 million sale of DAO treasury avails to iv major investors: Polychain Capital, Parafi Capital letter, Blockchain Capital letter, and noted whale wallet 0xB1.

The sale was made as office of a wider "Treasury Diversification through Strategic Partnerships" programme outset outlined in Annoy Improvement Proposal (BIP) 37. The Annoy treasury, currently worth over $600 meg USD, is primarily allocated in $BADGER, the DAO's native governance token, and $DIGG, a constructed rebasing Bitcoin.

According to Badger DAO founder Chris Spadafora, the sale featured an exchange of staked bBADGER tokens for USDC stablecoins which will be used to create a "Badger Backstop" insurance pool. By diversifying a percent of the treasury to avails like stablecoins, the DAO also hopes to prepare for market downturns with a "barbell" portfolio allocation.

Spadafora said in a written interview with Cointelegraph that it volition now be up to the community to decide whether to invest the newly-raised USDC tokens into a yield-bearing protocol or to but store them in the treasury. The terms of the sale were non disclosed, though the annunciation adds that the new partners will be "getting involved in governance to assist the protocol abound, providing long term liquidity and building more bridges with institutional ecosystem partners."

The sale is amidst the earliest examples of venture capital entities investing in a DeFi by way of a DAO — and it'south peradventure the largest to engagement. In 2018 Andreessen Horowitz invested $15 meg in MakerDAO, and earlier in the month Synthetix raised $12 million from a group of VCs as well.

Such relationships have been the target of ire among some DAO community members given that VCs often receive preferential investment terms. DeFi founders have largely been in unison that VC entities bring unique value to projects, however — a view that Spadafora has also adopted.

"DAOs should embrace large investment players based on their willingness to participate in governance and open their network to push the protocol forward. Doing it right for VC's is well-nigh becoming a community member vs an investor."