TL;DR
- Stani Kulechov seeks $50 million for Lens Protocol under Avara, valuing it at $500 million.
- The funding aims to strengthen Lens Network, a social platform based on ZKSync.
- Competitors like Farcaster have recently raised $150 million, valuing their platform at $1 billion.
Stani Kulechov, founder and CEO of Avara, formerly known as Aave, is actively seeking $50 million in funding for Lens Protocol.
This effort aims to value the social platform at $500 million, according to sources familiar with the funding process.
Lens Protocol, which raised $15 million in 2023 without disclosing its valuation at the time, is gearing up for the launch of Lens Network.
This new network, built on ZKSync technology, promises to offer users more robust control over their digital content.
Despite speculation about a potential token launch, Kulechov told DL News they haven’t made a decision yet, focusing first on developing and launching the network.
Avara, in addition to Lens Protocol, oversees other significant projects like the decentralized lending protocol Aave, the cryptocurrency wallet Family, and GHO, a stablecoin.
This diversification reflects the company’s strategy to position itself as a key player in the DeFi ecosystem and beyond.
The funding move for Lens Protocol comes shortly after its direct competitor, Farcaster, secured $150 million in a funding round that valued the platform at $1 billion.
This significant difference in valuation between competitors underscores the intense competition and high valuation that investors are willing to assign to Web3 platforms focused on monetizing and controlling digital content.
Implications and Future of Lens Protocol
Both platforms, Lens Protocol and Farcaster, focus on allowing users to manage and monetize their digital content more directly and securely.
Data from Dune Analytics indicates that approximately 70% of users on both platforms have fewer than 50 followers, highlighting significant potential among lesser-known users seeking new growth and monetization opportunities in decentralized social networks.
The future of Lens Protocol will largely depend on the success of securing this additional funding and effectively launching Lens Network.
With growing competition in the space of decentralized social platforms, it will be crucial for Avara to demonstrate Lens Protocol’s ability to differentiate itself and attract the attention of users and developers looking for more transparent and profitable alternatives in today’s digital blockchain landscape.
