On Wednesday, April 27th, Hector Finance announced its plans to invest $1 million in Bitcoin. The DeFi protocol intends to do this to diversify its portfolio and further grow its treasury.
According to an official report from Hector Finance, the team collectively believes that diversification reduces financial market risks.
Before the decision was made, governing members of the protocol had to vote for or against the investment proposal. The voting started on the 27th of April and ended 24 hours later.
More than 98% of the governing members of the Hector protocol voted in agreement with the BTC investment, while only 1.76% voted against the investment. The total HEC token staked in the voting polls was 37K HEC tokens.
While Hector Finance is still focused on building its project, the team acknowledged that BTC is at the top of the crypto market, and no coin can flip it from the top spot at the moment.
Despite BTC’s dip in value since December last year, the flagship cryptocurrency still has the largest market capitalization ($742 Billion).
Hector Finance has also invested in other crypto projects in the past few days. Five hundred thousand dollars from its treasury were used to invest in VET, and the same amount was used to buy into the NEAR protocol.
Hector is not the only DeFi protocol that has a keen interest in Bitcoin investments. Terra protocol has also been buying Bitcoin.
Last month, the founder of Terra revealed the protocol’s plans to acquire $10 billion worth of BTC to stack its reserves. Do Kwon went further to describe the planned accumulation of BTC as a means to “open a new monetary era of the Bitcoin standard.”
Shortly after announcing its plans to stack its reserves, Terra’s stablecoin outperformed the Binance coin in the crypto ranks by market capitalization.