A generalized marketplace protocol, the Root Protocol announces raising $9 million in a seed funding round to invest in Beanstalk. The primary participants in the seed funding round include Road Capital, Nima Capital, Manifest Crypto, and Soma Capital.
The valuation details of the Root Protocol aren’t in the public domain yet. The rent-free Root Protocol offers support for various permissionless markets.
The Root Protocol enables the prediction, financial, and commerce markets on the Beanstalk stablecoin protocol—the Ethereum-native fiat money issuer. Beanstalk’s market cap grew from a mere $100 to a whopping $100 million, with a TVL of $200 million in just 9 months.
Investments in the Root Protocol are essentially direct investments in Beanstalk itself, enabling its protocol auditing. The Root Protocol shall enhance Beans’ utility by generalizing them as fee-less markets, enhancing seller-buyer competition.
Root will develop a new zero-fee, positive-carry market structure, with accounts’ transactions in Bean-Denominated Value (BDV). Root’s BDV-based markets consist of Bean LP tokens and Beans.
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Aiming to enhance the coin’s utility, the Root Protocol is willing to test betting or yield-based interest rate-swap markets.
