Share this article
Andreessen Horowitz Leads $4.4M Round in DeFi's Element Finance
Element Finance, which is building a yield-maximizing marketplace for crypto interest rates, has landed some prominent backers.
By Danny Nelson
Updated May 9, 2023, 3:17 a.m. Published Mar 31, 2021, 6:02 p.m.
Make us preferred on Google
Decentralized finance (DeFi) startup Element Finance, which is building a yield-maximizing marketplace for crypto interest rates, said Wednesday it raised $4.4 million from Andreessen Horowitz (a16z) and Placeholder.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Seeking to gamify fixed interest rates, CEO Will Villanueva told CoinDesk the Element Protocol will imminently launch with a novel two token-system for enhancing liquidity.
The upcoming protocol is poised to enter an already bustling crypto lending and borrowing scene where established firms woo new deposits with the promise of lucrative rates. But those traditional interest rate schemes freeze up the underlying capital, a hallmark feature of lending one’s money that Villanueva sees more as a bug.
Element works by splitting those deposits into two tokens – one representing the principal position and the other a stand-in for the interest rate. Users could then opt to sell the rights to their principal token while still hanging onto the interest-bearing one.
“Because we split it into two positions you can sell your position at a discount so you can get more exposure to your interest,” he explained.
Villanueva said the setup allows users to skirt around high gas fees and other Ethereum blockchain friction points. “You just have to pay for a swap – similar to Uniswap – and that’s it,” he said.
SV Angel, A.Capital, Scalar Capital and Robert Leshner's Robot Ventures also participated in the round, Villanueva said.
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Coinbase CEO says Big banks now view crypto as an ‘existential’ threat to their business
Brian Armstrong returns from World Economic Forum with message: traditional finance is taking crypto seriously
What to know:
- Coinbase CEO Brian Armstrong said a top executive at one of the world’s 10 largest banks told him crypto is now the bank’s “number one priority” and an “existential” issue.
- At Davos, Armstrong highlighted tokenization of assets and stablecoins as major themes, arguing they could broaden access to investments for billions while threatening to bypass traditional banks.
- He described the Trump administration as the most crypto-forward government globally, backing efforts like the CLARITY Act, and predicted that AI agents will increasingly use stablecoins for payments outside conventional banking rails.
Top Stories
