Struct Finance announces the completion of a $3.9 million seed round funding to develop tools that will easily enable the ecosystem to compose, customize and invest in decentralized structured (DeFi) products.
A total of twenty-four elite investors have participated in the Struct Finance’s seed round, including Avalanche’s 200 Million Blizzard Fund, Antler, Assymetries Technologies, Arcanum Capital, Avalaunch, AVentures Dao, Bison Fund, Bixin Ventures, Double Peak, FBG Capital, Finality Capital Partners, Infinity Ventures Crypto, Keychain Capital, Lancer Capital, Lucidblue, MC Ventures, QCP Capital, SCC Investments, Skyvision Capital, Spark Digital, Wintermute, Woodstock, Zokyo, and 0xVentures.
Struct Finance will use this fresh injection of capital to build out the tools for institutions to easily customize their interest rate products and compose them with options to construct structured products that are better suited to the profiles of different investors.
Structured products
Structured products utilize a permutation of different interest rate products, options, and other financial instruments to construct investments that can be adapted to different risk profiles, market expectations, and asset classes.
With the emergence of derivatives in the crypto markets, structured products are a natural evolution for the space. These sophisticated products have been growing in popularity (over $7 trillion in TradFi), and have recently started gaining traction in DeFi, predominantly in the form of covered calls and cash-margined puts.
Challenges in creating structured products on DeFi
Today, many of the parameters available on different derivative instruments are static in nature, predominantly set by protocol developers, leaving investors with no choice but to take it or leave it.
Furthermore, many of the protocols offering these instruments experience fragmented liquidity as a result of having multiple maturity dates yet continue to utilize conservation functions that result in either high slippage or considerable changes to discount rates if larger volumes are transacted under low market depth.
What is Struct Finance?
Struct Finance further expands the spectrum of on-chain structured products by offering users a way to customize interest rate instruments and compose them with options available in the ecosystem to construct superior financial products.
The platform opens up the number of investment choices available, enabling varying protection levels, abstracts risk management, and complex pricing away from its users while providing highly-competitive yields on various digital assets. The team is currently launching on Avalanche but intends to scale into other EVM compatible chains in the near future.
What investors say
“IVC is thrilled to support Struct Finance’s pioneering vision to introduce and institute structured products within the booming DeFi ecosystem,” said Brian Lu, Founding Partner at IVC
“The Struct Finance team met in the Antler Singapore program. Upon strong validation of their business idea, the team founded Struct Finance and received pre-Seed funding from Antler. As the DeFi infrastructure evolves, there is a need for more flexible investment products. Struct Finance is addressing this with their innovative protocol layer for structured derivatives in DeFi”, said Markus Bruderer, Partner at Antler.
For more updates, Struct Finance can be reached out via the following social media channels:
Webpage | Twitter | Medium | Discord | Telegram
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