Binance Labs, the venture capital and innovation incubator of leading crypto exchange Binance, has made a strategic investment in the soon-to-be-launched decentralized finance (DeFi) protocol Ambit Finance, designed to enhance the utility of BUSD and other selected crypto assets in Binance Smart Chain.
Binance Invests $4.5M in Ambit Finance
According to the official announcement, the investment arm of Binance committed around $4.5 million to the upcoming protocol despite the ongoing second wave of crypto winter that stemmed from the fall of the Sam Bankman-Fried crypto giant FTX.
The $32 billion company went into bankruptcy on November 11 alongside its 130 affiliates worldwide after suffering a brief financial crisis described as a “liquidity crunch” by Binance boss Changpeng Zhao (CZ).
Due to the FTX implosion and its negative impacts on the industry, Binance launched a $1 billion ecosystem fund to bail out financially distressed firms affected by the collapse. The funds are part of efforts to revive the industry after suffering two massive blows that wiped out billions of dollars from the crypto space this year.
Today the company’s investment has deposited funds into Ambit to promote the development of the BNB ecosystem, which houses various decentralized applications (dApp).
Binance Labs has also made similar investments in other blockchain projects, including PancakeSwap, Manta Network, and Animoca Brands’ GAMEE.
“Binance Labs is always into nurturing and making investments in promising DeFi projects. We believe that there are solutions and teams to build products that can contribute to building a trustless DeFi industry even in a turbulent market.”
Binance Labs to Collaborate With Ambit
Aside from making a strategic investment in Ambit, the company said it would collaborate with the protocol to develop DeFi applications, focusing on innovation, security, and risk control. The deal will also see the two firms work with other projects in the BNB Chain ecosystem and beyond.
Under the partnership, Ambit will introduce new capabilities for BNB Chain users by creating a yield-bearing BUSD-based stablecoin designed to provide sustainable yield throughout all market conditions.
The upcoming DeFi project will also develop an application that will integrate both existing DeFi functionalities like collateralized lending and innovative solutions for domains like under-collateralized margin lending and structured products for financial institutions.
“The Ambit team has unprecedented experience of scaling mass-adoption protocols. The product will leverage lessons learned over the past year and make security and sustainability its governing principles. We will work closely with BNB Chain to make Ambit a cornerstone of the ecosystem’s on-chain strategy and, paired with Binance’s trusted brand and market strength, to make it a magnet for financial institutions entering the crypto space,” Sphere CM, co-founder and CEO of Ambit Finance.
