DeFi Protocol Veda Raises $18M for Yield Innovation

Decentralized finance platform Veda has completed an $18 million funding round led by CoinFund, with participation from Coinbase Ventures, Animoca Brands, and other prominent investors. The capital will accelerate development of its crosschain vault technology that enables yield-generating stablecoins and other DeFi products.

Investor Confidence in Onchain Yield Solutions

David Pakman of CoinFund described yield-bearing stablecoins as an "inevitability" in digital finance, noting their potential to disrupt traditional savings accounts. The investment comes as Veda's total value locked (TVL) surpasses 【$3.3 billion】, powering major platforms like Ether.fi's Liquid and Mantle's cmETH.

Bitcoin Yield Challenges Addressed

CEO Sun Raghupathi highlighted the complexity of Bitcoin yield generation, which Veda aims to simplify through its partnership with liquid-staking protocol Lombard. "Harvesting even modest yields requires significant technical effort," Raghupathi told Cointelegraph, emphasizing their focus on accessible BTC yield products.

Stablecoin Market Evolution

The funding reflects growing institutional belief in stablecoin adoption, with Circle CEO Jeremy Allaire predicting an impending "iPhone moment" for the sector. Currently, Tether's USDT dominates with 【$156 billion】 in circulation, followed by Circle's USDC at 【$61 billion】.

Regulatory and Competitive Landscape

——The emergence of yield-bearing stablecoins has reportedly caused concern among traditional banks——, according to industry observers. Pakman suggested these products offer superior convenience compared to money market accounts, potentially reshaping the financial services landscape.

Veda's backers include the founders of Polygon and Anchorage, signaling strong industry support for its crosschain yield infrastructure. The protocol's growth coincides with increasing demand for decentralized alternatives to conventional yield products.