Galaxy and SharpLink Launch $125M DeFi Fund to Boost On-Chain Yield Strategies

Odaily reported that Galaxy, a crypto financial firm founded by billionaire Mike Novogratz, announced it will collaborate with Ethereum treasury company SharpLink to launch a $125 million DeFi fund called the "Galaxy SharpLink Onchain Yield Fund." The fund will focus on high-yield strategies such as on-chain lending and liquidity provision.

The fund is expected to go live within the coming weeks. SharpLink will contribute $100 million from its ETH reserves, while Galaxy will contribute $25 million. Galaxy will serve as the exclusive fund manager, responsible for protocol selection, position allocation, and risk management.

Joseph Chalom, CEO of SharpLink and former Head of Digital Asset Strategy at BlackRock, stated that the company's goal is to continuously enhance the productivity of its ETH assets. Currently, SharpLink holds approximately $2.1 billion in ETH reserves, all of which are staked and deployed on platforms such as Linea, Ether.fi, and Liquid Collective. Since June 2025, the firm has accumulated roughly $44.6 million in yield.

With ETH staking annual percentage yields (APY) hovering around 2.5%-3.5%, some crypto treasury companies are seeking higher-yield DeFi strategies, including on-chain lending and liquidity market making. Such strategies can often yield annualized returns exceeding 10%, but they also come with significantly increased risks. Recent DeFi security incidents have been frequent. In April, the Solana-based derivatives protocol Drift Protocol was attacked by North Korean hackers, resulting in a loss of approximately $285 million. Subsequently, a cross-chain bridge vulnerability in Kelp DAO led to the theft of around $292 million in rsETH, further highlighting the security risks behind high-yield DeFi strategies. (Forbes)