Root Protocol Raises $9M
Root Protocol, a marketplace project for financial markets, forecasting and trading, has raised $9 million during the seed round.
Participants in the funding round include Road Capital, Nima Capital, Soma Capital, Manifest Crypto and other investors.
Root is based on the stablecoin protocol Beanstalk, which lost about $181 million in April as a result of a control system hack.
Root founder Part Patel has said:
“Obviously, this is a very unfortunate situation. I think there are still many lessons to learn about on-chain governance, which is far from what it should be.”
Beanstalk is issuing a “stablecoin” Bean on a leveraged basis. Investors buy the protocol’s debt, which earns interest.