DWF Labs Launches $75M Fund to Back Institutional DeFi Projects
DWF Labs, a crypto market maker and Web3 investment firm, announced plans to invest up to $75 million in decentralized finance projects aimed at supporting institutional participation, according to a statement posted on X on Wednesday.
The initiative will fund projects with scalable and “innovative value” propositions, focusing on dark-pool perpetual decentralized exchanges, decentralized money markets, and fixed-income or yield-bearing asset products. The firm said these segments are positioned for growth as crypto liquidity continues to move on-chain.
DWF Labs managing partner Andrei Grachev said DeFi is entering an institutional phase and underscored the need for infrastructure with practical utility that can accommodate large trade sizes, safeguard order flow, and deliver sustainable yields.
The fund will prioritize projects building on Ethereum, BNB Smart Chain, Solana, and Base, Coinbase’s Ethereum layer-2 network.
In addition to capital, DWF Labs said it will provide support such as TVL and liquidity provisioning, hands-on go-to-market strategy and execution, and access to affiliated exchanges, market makers, infrastructure providers, and institutional partners.
DeFi market outlook
Total value locked across DeFi protocols currently exceeds $120 billion, according to DefiLlama. TVL peaked around $175 billion during “DeFi Summer” in 2021 and nearly returned to that level last month, reaching approximately $166 billion before the Oct. 10 market decline.
In a YouTube interview published Tuesday with MN Capital founder Michaël van de Poppe, Chainlink co-founder Sergey Nazarov said DeFi is “about 30%” of the way to broad adoption. He estimated adoption could reach 50% once regulatory conditions are clarified and 70% when infrastructure and technology are streamlined enough for institutions to allocate capital and client assets to DeFi.
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