Composable Finance is breaking down barriers within Decentralized Finance by facilitating cross-chain and cross-layer interoperability. Advanced Blockchain is proud to have helped initiate and further support this project, and will be receiving Composable tokens and parachain fees in return for its contributions.
Advanced Blockchain AG is continuing to invest in and develop Composable Finance. Our organization has helped with incubating Composable alongside Rarestone Capital, and invested US $2 million in the project through a subsidiary, leading its successful US $7 million funding round. Other investors in this round were prominent blockchain venture capital firms including Divergence Ventures, New Form Capital, DFG, Maven 11, 4SV, Hypersphere Ventures, Blockchain Capital, PNYX Ventures, CMS Holdings, Alameda Research, SOSV, Spartan Group, LedgerPrime, LongHash Ventures, Cluster, and Pluto Digital Assets.
This investment will provide Advanced Blockchain with a new revenue stream, as well as access to the Polkadot parachain Composable intends to obtain. This investment will also allow us to support the development of a project positioned to resolve a critical problem facing the blockchain space today: lack of interoperability between different layers and blockchains.
Advanced Blockchain helped initiate and incubate Composable Finance, and continues to support the project now as an investor.
Through its subsidiaries, Advanced Blockchain AG incubated Composable Finance on the technical side and provided the intellectual property for Composable, which is creating a novel infrastructure to unlock widespread interoperability within the decentralized finance field. This incubation was completed alongside top-tier Web 3.0-focused venture capital firm Rarestone Capital, which assisted with product strategy and rollout for Composable Finance. Subsequently, Advanced Blockchain also invested into Composable.
Advanced Blockchain will be compensated for its role in supporting Composable.
Now, the relationship between these companies delivers a new revenue stream to Advanced Blockchain. First, Advanced Blockchain will receive 5.7 million Composable Tokens (out of the total 100 million token supply), which have various utilities on the Composable platform. Further, Advanced Blockchain could benefit from Composable’s parachain, which is a segment of the overall Polkadot blockchain ecosystem that can represent significant value. Composable will charge usage fees for its Polkadot parachain, and a portion of these fees will be paid to Advanced Blockchain. Additionally, Advanced Blockchain will be able to utilize the Composable parachain for its own projects, which provides a rare and valuable opportunity for new functionalities related to cross-blockchain interoperability. Use of the parachain in this manner also benefits Composable - maintaining a parachain requires individuals to build on it and pay fees.
Given the project’s important purpose as well as support by Advanced Blockchain and other prominent industry figures, Composable Finance has demonstrated strong initial performance.
Composable closed their funding round with a US $35 million valuation. The project was able to raise their US $7 million goal, with participation from many notable investors in the space. This round will allow for additional Polkadot investors, as Composable will have made more progress on this part of its infrastructure at that point. Finally, Composable will commence trying to attain a Polkadot parachain slot in the parachain auction in the summer of 2021.
Additional information on Advanced Blockchain AG and its other projects and investments can be found at www.advancedblockchain.com.