Yield, a project to create a bond market for the DeFi world, raised $ 10 million in new funding in a cycle led by Paradigm.

the project, which was incubated by Paradigm, introduced fixed rate loans to Ethereum, allowing market participants to borrow at fixed rates as well as issue token bonds that resemble Wall Street zero coupon bonds. Phone instruments are issued by companies as a means of raising capital and trading at a discount to maturity.

Other investors in the round, announced on Wednesday, include Framework companies, Symbolic capital partners, and CMS Fund.

The new capital will allow the project to expand its team to complete development of the second version of the protocol, according to Allan Niemerg, who co-founded Yield with Dan Robinson of Paradigm.

“We are expanding the team to continue working towards v2 and to seize the many opportunities that we see in trying to make fixed rates a fundamental part of DeFi,” said Niemerg, who was previously an analyst at the DRW trading store.

Ultimately, Niemerg hopes performance will become a key component of DeFi. Already the project worked with Rari to navigate a complicated hack. Rari is set to issue zero coupon bonds to users affected by the hack through Yield, which designed the bonds and built a market in which they can trade. Token bonds are called fyTokens, short for fixed-yield tokens.

“They give bonds to make their users whole. They really made the most of a tough situation,” Niemerg said. “I think it’s something that might be more common in the future, because hacks don’t go away, but they don’t always end the life of protocols.”

Hacks aren’t the only use case. Projects could issue bonds as a means of raising capital instead of selling assets from their treasury.

Similar to many other projects in the DeFi space, Yield’s ultimate goal is to become a decentralized autonomous organization.

“In the long term, our goal is to ensure that the Yield Protocol is owned and managed by its community,” Niemerg added.



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