According to Framework Ventures co-founder Michael Anderson, this startup venture is an early investor in Chainlink and Synthetix and one of its largest holders of tokens. When the Chainlink project was launched in 2017, Anderson and another co-founder, Vance Spencer, were both Chainlink's angel investors. In October 2019, Framework Ventures led Synthetix's $ 3.8 million financing and purchased 5 million Synth (SNX) tokens from the Synthetix Foundation.
In a new round of investment, Framework Ventures will invest $ 400,000 in Futureswap, a decentralized futures exchange, and $ 500,000 in Common Labs, developer of Proof-of-Stake (PoS) blockchain Edgeware. In addition, the company has locked 20,000 ETH in the Edgeware lock-in program to help advance the distribution of the network.
Anderson told The Block that Framework Ventures takes a different approach from most venture capital firms, in addition to simply buying currencies, it also supports the development of the network. According to him, traditionally, venture capitalists will buy and hold these assets, hedge funds to trade tokens for returns, while other companies will build applications on top of the agreement.
"Our view is that the best way to spread these networks is actually to do all three things. We have a venture capital style argument on the assets we support. We help the market increase liquidity by providing a network of validators And help guide the network. We will also build applications on the network to enhance the promotion of the protocol. "
Anderson said that Framework Ventures recently helped Futureswap build token economics and plans to provide liquidity to the network in the millions after the project launches.
With Common Labs, Framework Ventures is running some of the first validator nodes on the Edgeware network. The company is also running for the Cyber Governance Council-similar to running for a seat on the DAO. In addition, it helps the Common Labs team make strategic decisions to consider which application categories to follow. The company also plans to build products and features on top of the Edgeware blockchain.
"For Framework, it is of great value to really get involved and provide help, because as a new blockchain, these projects don't actually have resources like Ethereum or Tezos."
Anderson believes that the current flaw in the DeFi field is that many projects lack a perfect token economic model and governance model.
"DeFi has a huge opportunity to replace centralized finance. To do this, you really need to build a token economic model and governance model to replace BitMEX, Binance, or other major lending platforms."
Looking forward, Anderson said that Framework Ventures will focus on derivatives and lending projects. The stablecoin will also become the focus of the company's attention.
"Stable coins are very suitable for building consumer applications. Once distributed stable coins, it becomes a payment mechanism for industries like business, games or content, instead of using ETH or Bitcoin as a payment mechanism."