According to a May 18 release, a $50 million fund has been established to assist firms that employ the Wormhole cross-chain messaging system. Borderless Capital manages the new fund, which is backed by over 20 additional blockchain development teams and venture capital organizations, including Circle, Polygon Ventures, Solana Foundation, Jump Crypto, and others.
It's time to make building in crypto more accessible than ever before.
Introducing the $50m Cross-Chain Ecosystem Fund, powered by Wormhole! 💎 pic.twitter.com/y3VeCsUrSa
— Wormhole🌪 (@wormholecrypto) May 18, 2023
According to its application page on the Wormhole website, the fund will assist startups that are “innovating cutting-edge apps, infrastructure, or tools that span multiple ecosystems,” as well as “anti-maxi,” or promoting the idea that more than one blockchain is required to solve users’ problems.
Borderless Capital’s CEO and managing partner, David Garcia, believes the new fund will help to build the Web3 economy and allow applications to attract more users:
“Our goal is to empower builders to transcend the limitations of individual ecosystems, paving the way for blockchain applications and protocols to realize their full potential.”
Wormhole is a protocol for cross-chain communicating. It enables communication between blockchain networks and is frequently used to bridge assets from one network to another. For example, users might utilise Wormhole to move Ether ETH from the Ethereum network to the Solana network. According to the statement, it is linked to over 20 distinct networks.
LayerZero, Celer, deBridge, and many other cross-chain messaging protocols are also available.
Wormhole has grown its partner network in recent months. Uniswap, a cryptocurrency exchange, picked it as the official bridging protocol for its cross-chain governance between Ethereum and the BNB Network in January. Wormhole also merged with Circle’s Cross-Chain Transfer Protocol on April 26 to make it easier to transfer USD Coin from Ethereum to Avalanche.
Wormhole, on the other hand, has been the subject of criticism in the past regarding its security. In February 2022, its Solana bridge was hacked, resulting in $321 million in losses. Later, developers corrected the defective code that had led to the exploit and refunded all users.