Tim Draper-backed DeFi Money Market raises $6.5 million in a token sale

DeFi Money Market (DMM), an Ethereum-based loan platform backed by real-world assets, raised $6.5 million through an “Initial DEX Offering” that utilized Dolomite as well as Gnosis Protocol in a structure that replicates a bonding curve. The DMG token is a fork of the recently distributed COMP token and represents governance rights over the network allowing holders to modify key parameters. DMM currently holds $8.7 million in assets, mostly cars, and offers interest rates of 6.25% on ETH, DAI, and USDC.

Why it matters

• While the yield is lower than other platforms in DeFi as liquidity mining has pushed up rates, DMM loans provide less volatility as they have non-crypto native assets backing to them which could satisfy demand from lenders looking for more stability
• MakerDAO has long envisioned bringing on a wide variety of real world assets as collateral for loans. DMM could act as a proof-of-concept for their governance as well as others across DeFi as to what it could look like.