Greenwood, a decentralized financial lending agreement, raised $2 million in a seed round led by Polychain Capital to optimize interest rates for borrowers.
The company announced in a post that other participating investors include Blockchain Capital, Robot Ventures, and Divergence Ventures.
Greenwood also received personal investment from Ricky Li, co-founder of cryptocurrency trading company Altonomy, and Stani Kulechov, founder and CEO of Aave, a DeFi lending agreement.
The first phase of Greenwood's V2 agreement is currently running but has not yet been audited. It has launched a set of smart contracts on Ethereum that can be borrowed from Aave or Compound, based on any agreement with the lowest instantaneous annual interest rate.
The goal is to allow users and dapps to borrow crypto assets at the lowest interest rate through DeFi without having to calculate interest rates themselves.
Greenwood CEO Nathaniel Mendoza said that through the newly raised funds, the company also plans to hire more employees to help build the next three phases of its V2 agreement.
The company said in a statement: "In some stages, traditional financial instruments will be ported to Ethereum, while other stages will introduce new functions that are only possible on the chain."