YIELD.app, a project that describes itself as a "simpler" decentralized finance (DeFi) banking platform, has raised close to $5 million in a hybrid funding round led by Alphabit and Digital Strategies.
The funding will be used to continue supporting working capital, further development of the portfolio management system, marketing, growth and additional licenses, a spokesperson told CoinDesk via email.
According to a statement on Thursday, the funding came from multiple sources including $297,000 from online investment platform BnkToTheFuture. A further $3.4 million in private funding was secured from Alphabit Fund, Digital Strategies, PALCapital, Yeoman’s Capital and Chronos VC.
On Dec. 7, another $1.2 million was raised in partnership with TrustSwap from a presale of the platform's utility token ($YLD), bringing the total funding from the hybrid round to just under $4.9 million.
YIELD allows users to earn returns from investing in DeFi products and sets out to simplify the "costly learning process" associated with the relatively new sector. The project will soon launch an app on both Android and iOS.
Simon Dixon, CEO of BnkToTheFuture said YIELD was selected for investment because it has a "well-structured company" behind it. YIELD and its supporting companies are owned by UNIFI Group Ltd., a British Virgin Islands holding company.
The firm's website says it is regulated and licensed. When asked by CoinDesk, a representative said: "Yield.App is operated by ... Mwali international business corporations holding a restricted banking license and trust management license issued by the Mwali International Services Authority."
Mwali is the smallest island of the Comoros archipelago.