Decentralized finance (DeFi) protocol Struct Finance has announced raising $3.9 million in a seed round.
The funding round was led by twenty-four companies, including – Avalanche ecosystem’s Blizzard Fund, Infinity Ventures Crypto, Antler, Arcanum Capital, Assymetries Technologies, Avalaunch, AVentures Dao.
Other participants of the funding round also include – Bison Fund, Bixin Ventures, Double Peak, FBG Capital, Finality Capital Partners, Keychain Capital, Lancer Capital, Lucidblue, MC Ventures, Skyvision Capital, QCP Capital, SCC Investments, Spark Digital, Wintermute, Woodstock, Zokyo, and 0xVentures.
The Funding
According to the official press release shared with CryptoPotato, Struct Finance plans to deploy the fresh injection of capital to develop tools for institutions in a bid to easily customize their interest rate products and compose them with options to construct “structured products” that caters to the profiles of different investors.
For the uninitiated, Struct Finance aims to solve the current inefficiencies in DeFi money markets with structured financial products. The products of the DeFi protocol tokenize a suite of yield-bearing positions and complicate derivatives to offer market participants an easy investment product tailored to their risk profile by leveraging existing smart contracts.
Need for “Structured Financial Tools”
Double Peak’s Founding Partner Galen Law-Kun, revealed that Struct Finance marks its first DeFi Investment into the Avalanche Ecosystem. While extending long-term support, he added,
“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.”
Mark Stanwyck, the Co-Founder of Avalaunch, highlighted the need for sophisticated instruments that can support the demands of institutional as well as retail investors.
In the last two years, structured products have grown alongside the overall DeFi sector that focuses on broadening the exposure in a simple yet cost-effective way. The key is to help investors and liquidity providers with varying risk appetites to benefit from the high yields by enhancing capital efficiency and tunable investment strategies.
To that extent, Tamer Ovutmen, Founder of AVentures DAO, believes that Struct Finance is bridging the gap in the DeFi offerings of the Avalanche ecosystem with financial instruments that will enable structured products in the space. Ovutmen also said,
“We believe the next wave of growth in DeFi will be from Options, Perpetuals and Structured Finance where Struct Finance will be a key protocol.”
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