Delphi Digital launches Labs wing to bolster portfolio company development

Why wait for one of your investments to release a new feature when you can easily create it yourself?

The newly announced addition to Delphi Digital aims to do just that. The cryptocurrency investment, media and research firm is now adding a Delphi Labs division that will focus on helping develop the ventures portfolio company.

0 / We’re excited to announce the next level in @ Delphi_Digital’s development: Delphi Labs

At Delphi Labs, our goal is simple: to become the leading contributor in building the decentralized future: //t.co/DEmgfPORmQ

– Delphi Digital (@Delphi_Digital) February 26, 2021

Delphi Digital analyst José Macedo said the move will help expand Delphi’s current development wing, which currently employs nine people. Before branching off from Research, the Labs team helped design tokenomics for several projects. Aave is currently redesigning its $ 1.4 billion security module.

According to Macedo, the impetus for the new wing of the company is the lack of development and smart contract development resources that are endemic to this space.

“I think what led to this model was working with top projects and experiencing firsthand how much work needs to be done and how easy it is not to have the talent. We recognized the IP that we gained and can be used across the room. “

While Labs will currently continue to focus on tokenomics and governance proposals, as it expands, it will ultimately help incubate younger projects and potentially bring entirely new protocols to market under the Delphi brand, within a timeframe of two years in the announcement.

Big Money Governance

Delphi isn’t the only one playing a more active role in the protocols it invests in. How venture capital funds interact with decentralized autonomous organizations has been a hotly debated topic lately, with some members of the crypto community arguing against preferential treatment (and / or governance token investment terms) for deep pocket investors while others say that funds, like any other participant, are welcome to become part of public good governance.

So far, protocol founders strongly advocate participation in venture capital, especially when companies make significant contributions. Uniswap founder Hayden Adams argued so much in a long Twitter thread two weeks ago:

1 /

I think it’s worth briefly explaining the positive and mutually beneficial experiences I’ve had with @paradigm @ a16z @usv and other investors.

I’ve seen a lot of negativity and propaganda so I think it’s worth sharing my personal experience.

Short thread:

– Hayden Adams (@haydenzadams) February 12, 2021

Synthetix also announced a $ 12 million increase through three venture capital funds earlier this month.

It’s a model Macedo said makes sense: projects can leverage Delphi’s research and development power, and Delphi, in turn, will see its investments flourish:

“We only want to work with projects whose tokens we want to hold for several years, and our goal is to be long-term participants with coordinated incentives.”

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