Prague-based venture capital, RockawayX, sustained an early investment in the Solana blockchain even before its public launch. They have recently announced setting up a new fund of $125 to aid the driving projects done in Solana’s Growing Ecosystem. The fund will specifically aid the builders and startups creating innovative applications for Solana’s ecosystem.
Fund Allocation to Focused Yield-Bearing Constructive Development
The planned expenditure cap on two of RockawayX’s funds equates to around two-thirds, which is prosperous from flex fuel. It is also where RockawayX said they will use the new fund to advance block construction funding. Along with that, another concentrated focus will be leveraged decentralized opportunistic financing.
Engineering-First Approach Drives Impressive Returns
Under the leadership of its CEO, Victor Fischer, RockawayX follows an “engineering-first, hands-on strategy,” which has proven effective for the company in the past. With this approach, RockawayX engages deeply with the projects they support and often acts as early adopters and critical infrastructure builders. It is reported that the firm’s 2021 fund, which also had a focus on the Solana ecosystem, returned over five times the capital invested.
That return not only underscores their investment philosophy but also the strategic insight guiding it. Besides this, it also strengthens the confidence in the firm’s investor base, including former investors who were pleased by RockawayX’s early investments in Solana and other crypto industry heavyweights like Wintermute and Morpho Labs.
In Group 1’s investment thesis for RockawayX DeFi on Solana, Itmar Ben-Ezra explained how the firm tries to maximize the gains from the liquidity inflow in the crypto market, saying that, “We initiated our own credit facility with a pool started in 2022 and funded 12% in credit lines on the Ethereum network.”
Order of Business on Exploitative DeFi Lending Strategies
When asked about the firm’s vision of the decentralized finance sector in the next five years, Mr. Ben-Ezra mentioned the formation of an extensive range of lending protocols across various chains with intricate storytelling models on Credit Evaluation APIs.
In a single transaction, he goes long, and this made Fischer defy his thesis that it always goes 3 times the theoretical value. “We formulated the investment strategies based on on-chain mechanisms and models that value real financial trades.”
Unearthing Value on Solana
Though most people perceive Solana as a trading-centric network, Victor Fischer strongly believes the blockchain is capable of so much more. He noted that approximately 65% of the circulating supply of SOL is currently staked, earning around 8% yield.
That’s greater than what is seen on the Ethereum network, where only 28% of ETH is staked, leaving a greater proportion of ETH free for lending and participation in DeFi protocols. This comparison demonstrates that the Solana ecosystem is still lacking in DeFi infrastructure.
RockawayX’s Solana ecosystem engagement shifts as the company joins the Solana Foundation and Helius Labs to develop a new focus accelerator program for Solana startups, “Solana City,” which will open in Dubai on May 1. This effort traces the lines of the city’s strategy to establish itself as a global hub of crypto innovation.
This is part of RockawayX’s initiative to step up the efforts to nurture the next generation of builders on the Solana blockchain while also launching an increased access fund. With the opening of Solana City, RockawayX ensures its role as a key investor and ecosystem builder in the ever-expanding Solana universe.
