Tag: threearrowscapital

Orderly Network Pulls $20M Funding to Develop DEX Protocol

Orderly Network, a Decentralized Exchange (DEX) protocol incubated by NEAR and Woo Network has raised $20 million in venture capital funding. 

As contained in a note shared with Blockchain.News, the funding round was led by Three Arrows Capital with participation from Pantera Capital, Dragonfly Capital, Sequoia China, Jump Crypto, Alameda Research, GSR Ventures, and MetaWeb.VC, as well as a group of strategic partners.

Venture financing is expected to be trickling down considering the highly bearish macroeconomic outlook of the broader digital currency ecosystem and financial world. As a protocol that aims to empower DApps built on NEAR with DEX solutions, Orderly Network has earned its place as one of the outfits worthy of being embraced with its infrastructural positioning.

“We are proud to back Orderly as they build out top-performing infrastructure and deep liquidity on NEAR. Infrastructure being built for traders by traders—results in better products that are designed to meet the specific needs and provide the best possible trading experience. Pairing this product-first ethos with best-in-class liquidity options and a team with a proven track record, we believe that Orderly is primed for success,” said Kyle Davies, Co-founder, of Three Arrows Capital.

Orderly Network plans to use the new funding round to absorb more staff across different units, and “develop and enhance new and existing products while growing the Orderly ecosystem and establishing partnerships along the way.”

In addition to the series of solutions it has launched in times past, Orderly Network plans to also “launch community lending pools where token holders are able to lend assets to market makers while enjoying a single-sided liquidity provision with sustainable yields.”

Venture Capital firms are doubling down on the efforts to back innovative products working toward the mainstream adoption of cryptocurrencies. As reported earlier by Blockchain.News, Solana announced a $100 million fund to back Web3.0 startups in South Korea, and these investments are bound to continue trickling in irrespective of the underlying economic outlook.

Three Arrows Capital Becomes 2nd crypto issuer Facing Insolvency

Singapore-based crypto hedge fund Three Arrows Capital (3AC) is facing insolvency issues following the extreme market condition in the crypto industry.

Reports show that the hedge fund manager has liquidated at least $400 million worth of its crypto assets to other crypto lending firms in order to cover its debts. The firm is currently in the process of repaying lenders and other counterparties.

On-chain data suggests Three Arrows Capital is selling its existing crypto positions to lower collateral requirements for certain positions. Blockchain data indicates that one of 3AC’s wallets has a debt totalling $183 million.

Since its liquidation, 3AC is said to have maintained limited contact with counterparties. However, Su Zhu, a co-founder of the firm appeared to have tried to address the issue on Twitter last morning stating: “We are in the process of communicating with relevant parties and fully committed to working this out,” he said, without mentioning specific details.

Meanwhile, the firm is said to be in the process of looking at how it can reclaim its position with lenders and other parties.

3AC’s case is similar to the case of cryptocurrency lending and borrowing platform Celsius Network, which was rumoured to be struggling with insolvency fears on June 13.

Founded in 2012 by classmates Zhu Su and Kyle Davies, 3AC is a well-known crypto hedge fund firm that has invested in several GameFi and DeFi projects. According to data analysed by analytics firm Nansen, its blockchain investments alone were worth US$10 billion during the peak market.

With investments in play-to-earn game Axie Infinity and companies such as BlockFi and Deribit, Three Arrows Capital has an extensive portfolio. In April, the hedge fund firm announced plans to move its headquarters from Singapore to Dubai.

Crypto Economy Meltdown

The recent crash in the crypto market further fueled the plight facing 3AC. Last month, the collapse of Terraform Labs’ LUNA and the de-pegging of UST resulted in massive losses for 3AC, which is a huge backer of the Seoul-based crypto firm.

Recently, Three Arrows Capital grabbed social media attention after it started dumping its staked ether (stETH), which is down nearly 40% in the last week alone. Due to the current market plunge, stETH dropped its price 7% lower than the price of ETH, a fall that has caused huge losses to some of its largest holders such as 3AC as well as embattled cryptocurrency lender Celsius Network.

Following rumours of insolvency concerns over the weekend, on Monday Celsius Network paused indefinitely withdrawals, swaps, and transfers between accounts due to “extreme market conditions.” The crypto lending firm has continued evading pressing questions about the solvency of its business and the safety of its customers’ deposits.

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