On November 30, Colony, a community-driven Avalanche ecosystem accelerator, announced the completion of US$18.5 million in financing. This round of financing was led by the Avalanche Foundation, and Shima Capital, Hashkey, GBV Capital, Bixin Ventures, etc. participated in the investment.
Counting the seed round just completed not long ago, this is the second time that Colony has received funding from the Avalanche Foundation in just two months. Previously, on October 21, Colony had completed a seed round of financing of over US$1 million, co-led by GBV Capital, Foresight Ventures and the Avalanche Foundation, Avalaunch, Avatar, Yield Yak, NGC Ventures, Spark Digital Capital, Cipholio Ventures, MEXC Global, Synaps and ZBS Capital participated in the investment.

Although the official positioning is an ecosystem accelerator, Colony can also be understood as a decentralized Avalanche ecological fund.As a fund, Colony deploys its capital in four ways:

1. The investment is based on early projects developed by Avalanche, and the allocation of this fund is 50%.

2. To provide liquidity for the existing DeFi agreements on Avalanche, the allocation ratio of this fund is 30%.

3. Purchase and pledge AVAX and the upcoming subnet tokens, the allocation ratio of this fund is 10%.

4. Purchase the top ten project tokens in the Avalanche ecosystem by market value, and build index derivatives on this basis. The allocation ratio of this fund is 10%.

According to the official description, among the above four capital allocation methods, the first (early investment) will be executed by Colony's core team, which is composed of a number of professionals with their own investment experience in the Crypto industry. Its Chief Investment Officer Jean Baptiste Served as the co-founder and chief information officer of Olymp Capital; as for the latter three (liquidity mining + pledge + index), although they will be run by the Colony agent in the early stage, after the DAO structure is completed, it will be driven by the collective responsibility of the community .

Colony's community will be formed and operated with the native token CLY as the medium. On December 1, Avalaunch, the Avalanche ecological IDO platform, announced that it will launch the public offering of CLY on December 6, with a total fundraising amount of US$2 million. In the future, all holders of CLY will have the opportunity to participate in the governance of Colony, jointly decide the flow of capital allocation, and then reap the rewards of Colony's protocol profits.

From an ecological point of view,The role of Colony in the Avalanche ecosystem is a bit like Gitcoin, the "Arsenal of Ethereum". Although the specific implementation methods of the two are quite different (investment vs. donation), they are both helping those early projects that are not yet fully fledged. Boost the further development of the ecology as a whole.

Due to the investment form, Colony will continue to capture income while promoting the development of the Avalanche ecology, and then realize its own value growth. But on the other hand, because it is completely focused on the Avalanche ecology, the development prospects of the project are largely It will also depend on the development of Avalanche.