While in anticipation of the EOS EVM mainnet launch on April 14, it was the surprise announcement of a strategic partnership between the EOS Network Foundation (ENF) and DWF Labs that elevated excitement levels within the EOS ecosystem.
In what is the EOS network’s largest investment of external capital, the $60 million partnership between the ENF and DWF Labs will see the latter purchasing $45 million worth of EOS tokens and deploying a further $15 million into EOS projects.
As a global digital asset market maker and multi-stage Web3 investment firm DWF Labs will take the purchased $45 million EOS tokens and deposit them onto crypto exchanges to provide liquidity. DWF Labs’ Managing Partner, Andrei Grachev, states that this approach will help create markets, provide depth, and improve order execution.
Andrei also believes that liquid and deep markets are the key to the provision of price discovery, efficient and simple enter and exit positions for retail, institutional and algorithmic traders. He goes on to further state that:
“When the markets are maintained properly and liquid enough, the rest of inventory is being used as a collateral for prop trading strategies. Many exchanges allow market makers to use coins as a collateral and borrow stablecoins or trade perps [perpetuals] and options. An additional tool to generate some yield for an inventory is to stake coins or to lend coins to people using exchanges’ solutions.” - Andrei Grachev (*DWF Labs Managing Partner*)
DWF Labs was named a top crypto investment firm by Coindesk in a recent article that features Andrei. In it there’s a comment from Andrei stating that his firm “believes that this bearish market – this turbulent market – is the best time to join the investment space”. Among their several interests is making investments into the GameFi sector, the same sector that the EOS Network Venture (ENV) fund has recently committed $20 million towards.
Despite having made big investments since 2018 into other leading projects in the industry such as Floki, Synthetix, and Fetch.ai, DWF Labs’ investment into EOS has been their single biggest investment to date. According to the ENF’s CEO, Yves La Rose, this big investment just shows how committed DWF Labs are to the growth and success of EOS.
“DWF Labs made it very clear how badly they want this deal because of their belief in EOS. Although we’ve been in talks with multiple firms, DWF stood out for their demonstrated conviction towards EOS. This isn’t just an investment of $60 million. It’s a true strategic partnership. When I say DWF proved how serious they are about EOS, what I mean is that they literally found my travel schedule and followed me around the world, from South Korea to Singapore to Paris to Hong Kong, just to meet. That's how serious they are about EOS.” - Yves La Rose (*ENF CEO*)
This strategic partnership between the two entities to promote the growth of the EOS network and its wider ecosystem is a much welcomed endeavor by the EOS community. As the list of partners that want to elevate EOS’ position in the industry grows, so too will its influence and reputation as a leading network.