Struct Finance Raises $3.9 Million in Seed Round to Develop Structured DeFi Products
Struct Finance, a DeFi protocol today announced it had closed a $3.9 million seed round to build DeFi-based tools that will enable the emerging landscape to customize, compose, and invest in decentralized structured products.
Struct Finance Raised $3.9 Million
Notably, a total of 24 investment firms took part in Struct Finance’s funding round, namely Blizzard Fund (Avalanche’s 200 Million fund), Antler, Arcanum Capital, Assymetries Technologies, 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.
Commenting on the development, Galen Law-Kun, Founding Partner – Double Peak, said:
“Struct Finance marks our first DeFi Investment into the AVAX Ecosystem. Through the leadership of Louis, Ersin and Miguel, we believe Struct Finance will set the gold standard of templated smart contracts. Thus, allowing people to easily release their own structured financial products either on AVAX or various other ecosystems. Double Peak Group is very excited to be a part of this journey in bringing mainstream adoption to DeFi and in the long term, support a multichain future for Struct Finance.”
Similar sentiments were echoed by Karthik Bupathi, Founding Partner – Arcanum Capital, who said:
“We decided to support Struct Finance because we feel they are creating a much needed cross-chain solution for both institutional and retail participants to launch their own structured products with fewer design limitations, allowing for more innovative investment products.”
The fresh inflow of capital will be used toward developing institutional-grade tools to easily customize interest rate products and compose them with options to build structured products that cater to the investment needs of different investors.
For the uninitiated, structured products typically leverage 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.
The rise of derivatives in the crypto markets means that structured products are the logical next step for the industry. For comparison, structured products command a value of more than $7 trillion in traditional finance and are becoming increasingly popular in the DeFi ecosystem, mostly in the form of covered calls and cash-margined puts.
A major problem with the current crop of structured products is that they are static in nature. This means there’s less scope for customizing such products and investors usually find themselves in a tricky situation where they’re expected to either take it or leave it.
In addition, the majority of the protocols offering structured products in DeFi experience fragmented liquidity as a result of having multiple maturity dates. Yet, they continue to utilize conservative functions that result in either high slippage or significant changes to discount rates if larger volumes are transacted under low market depth.
Enter Struct Finance
Struct Finance aims to solve the issues facing the DeFi ecosystem today with regard to structured products. The protocol expands the scope 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 develop superior financial products.
Struct Finance widens the number of investment choices available, enables varying protection levels, and abstracts risk management and complex pricing away from its users while offering highly-competitive yields on a wide array of digital assets.
Currently, the Struct Finance team is launching the protocol on Avalanche but has plans to scale into other EVM-compatible chains in the future.
