Prophecy Defi (PDFI.C) completed its acquisition of the remaining 40% of Layer2 Blockchain today in an all share deal, according to a press release.

 

This is the final closure of a story that started on July 9th, when Prophecy snatched up 60% of Layer2, courtesy of Layer2’s management having the right stuff when it comes to identifying opportunities in the decentralized finance space. They executed on market trades and made returns that bested Prophecy’s targets, and it was on that basis that PDFI decided it was best to pick up the remaining interest in Layer2.

 

“We are thrilled to acquire full ownership of this innovative company. Layer2 is managed by an extremely talented team of Defi operators, and we will be accelerating the growth of the existing Layer2 business with additional capital and resources that will continue to enhance their operations,” said John McMahon, CEO, Prophecy Defi.

Layer2 Blockchain provides liquidity, lending pools, and staking options for non-Ethereum based decentralized finance protocols. They offer capital to emerging marketplaces, taking a cut from high yields in addition to an early ownership stake in the exchanges while they develop.

 

Layer2 launched a DeFi protocol in 2019 and was one of the first applications to leave the Ethereum blockchain in order to increase speeds and reduce costs associated with scaling. Layer2 deploys in-house tech to discover and exploit opportunities using their industry knowledge and expertise in both DeFi and the Ethereum layer 2 ecosystem. They intend to generate revenue through capital provision, cross-chain DeFi protocol arbitrage, staking and managing DeFi specific infrastructure, like bridges.

 

Prophecy DeFi is the kind of company that finds, invests and benefits from the relationship with these companies.

 

“This relationship with Prophecy Defi is truly symbiotic. With the access to capital and knowledgeable advisors that Prophecy Defi offers, we are able to concentrate our efforts on executing our business plan. Just 60 days after the initial Transaction, we’ve proven the business thesis and see a tremendous future in the growth prospects of the company.” said Andrew Young, CEO, Layer2 Blockchain.

 

Layer2 Blockchain’s performance since they have been deploying capital into decentralized finance opportunities in July bears a note. As of September 2nd, during its first 47 days of operations, they managed nine trades. The largest of which was providing liquidity provisioning to defi platform, DinoSwap. The amount of capital put into this trade reached $3.2 million and through this trade alone Layer2 had a capital appreciation of $1,023,719 in this period, and pulled in a weighted rate of return of 77.75%.

 

They have also deployed capital through liquidity provisioning on ApeSwap, QuickSwap and Impermax, where Ethereum, Bitcoin, MATIC and stablecoins have been deployed. These trades yielded holding period returns of 76.31%, 42.3%, and 25.9%, which translates for the laymen out to profits from these trades multiple times a day.

—Joseph Morton

Written By:

Joseph Morton

Joseph is a Vancouver-based author and journalist with both a communications degree and journalism diploma (and a few novels) under his belt. His joie de vivre is to spin difficult technical topics into more human-centric narratives. Buy him a coffee and he'll talk your ear off for hours about privacy issues, blockchain, cryptocurrency and martial arts. Don't talk to him if you're either a tomato, a bully, or if you're not a fan of either 1984 or Tender is the Night. No. You can still talk to him. Just be prepared to be told why you're wrong.

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Cryptocurrency
Decentralized Finance
Digital Asset Management
Finance
ApeSwap
blockchain
consensus mechanism
decentralized exchanges
Decentralized Finance
DeFi
DEX
DinoSwap
Ethereum
Impermax
layer2 blockchain
lending pools
MATIC
PDFI.C
Proof of Stake
Prophecy DeFi
QuickSwap
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