Defi Dev Corp., Fragmetric to Launch Korea’s First $SOL DAT

DeFi Development Corporation, one of Solana’s earliest DATs, has partnered with Fragmetic, a Solana restaking protocol, to acquire a publicly traded company and launch Korea’s first $SOL DAT.

Defi Dev Corp’s foray into the Korean TradFi scene comes as part of the firm’s multi-country expansion plans, which saw the launch of Britain’s first $SOL DAT, DFDV UK.

While Defi Development Corporation’s aggressive growth strategies are expected to help the DAT grow its $SOL-per-Share, does the firm risk flying too close to the sun?

DeFiDevCorp to Launch Korean $SOL DAT

Fragmetric co-founder Sang.sol has kicked off Korea Blockchain Week in style, announcing the restaking protocol’s partnership with Defi Dev Corp to launch Korea’s first $SOL DAT. 

The joint venture is expected to acquire a publicly traded Korean company, which will then be used to operate a $SOL treasury. Details surrounding any successful fundraises, the public company in question, or whether the Fragmertic-operated DAT will also acquire $FRAG remain unconfirmed.

Defi Development Corporation’s entrance into the Korean TradFi scene marks the firm’s second international venture. In late August, Defi Dev Corp acquired a 45% stake in Cykel AI, an entity the firm expects to rebrand to DFDV UK. Defi Development Corporation reportedly intends to pursue as many as five similar treasury vehicles in various jurisdictions.

Treasury Accelerator or Glorified Memecoin Game?

On September 18, Defi Development Corporation outlined the vision for its Treasury Accelerator, or a strategic model by which the firm intends to grow its $SOL-per-Share through investment in external DATs.

The bulk of investments made through the Treasury Accelerator are intended to support new $SOL DATs, and specifically, DFDV-powered DATs like DFDV UK and the incoming DFDV Korea. 

However, recent announcements suggest that Defi Dev Corp will also support “promising” DATs dedicated to accumulating other assets. On September 19, it was revealed that DFDV had invested $22.88M in ZeroStack, an upcoming DAT centered around $0G, an unlaunched AI infrastructure coin.

At first glance, this suggests that DFDV either needed to sell its $SOL holdings to fund the investment, or Zerostack would ultimately be required to sell provided $SOL for $0G purchases. In a recent tweet, DFDV COO Parker White explained that the structure of the raise ensures the firm continues to earn staking yield.

While this model makes sense for $SOL-based DATs, it’s unclear how exactly it functions in the case of Zerostack’s $0G. In an exclusive statement, Defi Development Corporation shared with SolanaFloor how the structuring of the investment enables the firm to capture potential upside without risking the $SOL on its balance sheet.

“The investment is structured as a convertible debt instrument. We contributed SOL. FLGC can't sell it without our permission. If the stock outperforms SOL, we can convert the debt into stock, sell the stock, and buy more SOL on our balance sheet. If the stock underperforms SOL, we just get the SOL back later. The coupon on the convert is approximately the same or slightly higher than the staking rate.” - Pete Humiston, Defi Development Corporation Head of Research.

Defi Development Corporation’s plan to invest in DATs running treasury strategies and steer profits towards increasing $SOL-per-Share bears ironic similarities to degens trading memecoins to try and grow their $SOL holdings.

$FRAG Up 10% Despite Market Crash

For an embattled $FRAG token, the announcement of a collaboration with Defi Dev Corp and the acquisition of a publicly traded company has offered a breath of relief. 

$FRAG is up 12% on a daily time frame, outperforming the Solana ecosystem while the wider crypto market suffers heavy drawdowns triggered by the liquidation of over $1B in long positions in the last 24 hours.

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