Lava

Lava is a decentralized lending market platform designed to address impermanent loss in decentralized finance (DeFi). The company, founded in Hong Kong in 2019, provides a platform that facilitates arbitrage across market-making rates by enabling the collateralization and lending of liquidity positions.

The system allows borrowers to capitalize on differences in liquidity provision rates between DeFi and centralized finance (CeFi), aiming to establish an effective market rate. For passive liquidity providers, Lava's platform simplifies the process of yield optimization. The company's broader vision is to create a modular and permissionless hub for various Web3 services, including oracles and sequencing.

Lava has secured significant funding to support its development and growth. In a Series A round on December 9, 2024, the company raised $10 million. Another report indicates a $5.8 million funding round to develop digital wallets for the agent-native economy. Additional funding includes two seed rounds totaling $27 million from investors such as Jump Capital, HashKey Capital, Animoca Brands, and iAngels.

Keywords: decentralized lending, DeFi, cross-chain liquidity, yield optimization, impermanent loss solution, CeFi arbitrage, liquidity positions, Web3 infrastructure, decentralized finance, financial software, blockchain data, digital wallets, agent-native economy, crypto lending