FTX Ventures, a capital investment fund under crypto exchange FTX, has invested in Lens Protocol, a composable and decentralized social graph created by the team behind decentralized finance lending platform Aave, Fortune reported on November 4.
Aave and Lens Protocol confirmed the fundraising, but they have not disclosed the size of the round or when the deal will close.
As a user-owned and open social graph that makes building a Web3 social platform easy, Lens Protocol has familiar social media functions like personal profiles, commenting, resharing a post, and more. But unlike Web2 social media of the past, Lens Protocol, which was founded in February this year, is powered by NFTs, so users own and control all of their content.
Profile NFTs are the main premise of the Lens Protocol. These dynamic NFTs are composable, non-custodial and permissionless. Individual addresses can own profile NFTs, an address can have multiple profile NFTs, and a profile NFT can be owned and run by a DAO via a multisig wallet.
When users follow someone, they’re granted a “follow NFT.” Each of these has a unique token ID that comes with innate rarity and utility. These unique traits can be used to limit voting to their most loyal fans in governance snapshots. They can even be traded on an open market.
Launched on Polygon Mumbai, Lens Protocol is designed to put power back into the hands of the community. It provides a user- and creator-first foundation for any application to plug into and gives people full ownership over their profile, content – including how to monetize – and relationships with their community.
Meanwhile, a report by Cointelegraph reveals several disadvantages of Lens Protocol, such as that any user content can be potentially manipulated as all original files are stored in distributed file storage systems. There is also the risk of smart contracts and NFT maintenance, because there are several scenarios in which hackers can attack DeFi networks.