Strut Finance, a DeFi protocol built on Avalanche, has announced the completion of a $3.9 million seed round funding aimed at raising funds to develop structured decentralized finance (DeFi) products.
A total of 24 investors participated in the seed round funding. The investors include Avalanche’s 200 Million Blizzard Fund, xVentures, Assymetries Technologies, Antler, AVentures Dao, Infinity Ventures Crypto, Arcanum Capital, Skyvision Capital, Avalaunch, Woodstock, Zokyo, Lucidblue, MC Ventures, Bison Fund, Spark Digital, Bixin Ventures, Wintermute, Finality Capital Partners, Double Peak, Lancer Capital, FBG Capital Keychain Capital, and SCC Investments.
After making their contribution, the Co-Founder of Avalaunch, Mark Stanwyck, said:
“As crypto markets mature and DeFi takes root, the need for sophisticated instruments which are capable of supporting the demands of institutional and retail investors becomes paramount. Struct not only offers this but also allows users to compose existing instruments together, opening an endless array of strategies. The team behind Struct has done nothing but build and execute around these novel concepts, and it’s an honor to be able to support them on their journey.”
According to the Managing Partner at Lancer Capital, Candice Zhao:
“Investors and institutions are forever faced with large swings in yields and token prices, or uncertainty and unquantification created by overly complex derivative protocols. Struct Finance is bringing structured financial products to DeFi, providing investors with attractive and simplified stablecoin yields. I am an admirer of their team, and I believe that fixed-income related products will become the first choice for institutional investors.”
Structured DeFi products for institutions
The collected capital shall be used to develop tools that enable institutions to easily customize their interest rates products and also develop structured DeFi products better suited for the profiles of the different investors.
Structured products utilize a combination of different interest rate products to build investments that can be adapted to different risk profiles, asset classes, and market expectations. They mainly take the shape of derivatives such as options.
Struct Finance expands the range of on-chain structured products by providing users with a way to customize those instruments that have interest rates thus enabling them to compose superior financial products using the available options in the ecosystem.
Struct Finance increases the number of available investment choices, thus enabling varying protection levels, abstracts risk management, and complex pricing while providing highly-competitive yields on various digital assets.