DeFi Protocol Struct Finance has raised $3.9 million in seed funding round.
A total of twenty four companies have participated in the funding round for Structure Finance like AVentures Dao, Bison Fund, Bixin Ventures, Blizzard Fund, Double Peak, FBG Capital, Finality Capital Partners, Infinity Ventures Crypto, Keychain Capital, Antler, Arcanum Capital, Assymetries Technologies, Avalaunch, Skyvision Capital, Spark Digital, Wintermute, Woodstock, Zokyo, and 0xVentures, Lancer Capital, Lucidblue, MC Ventures, QCP Capital, SCC Investments, it said in a statement.
The startup plans to use the funds 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.
“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”, said, Galen Law-Kun, Founding Partner – Double Peak.
Founded in 2021, Structure Finance expands the spectrum of on-chain structured products by providing a way for users to customize interest rate instruments and equip them with the options available in the ecosystem to build better financial products.
The platform opens up the number of investment options available, enabling different security levels, intangible risk management and complex pricing away from its users while providing highly competitive returns on various digital assets. The team is currently launching Avalanche, but intends to delve into other EVM compatible ranges in the near future.
“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”, said, Mark Stanwyck, Co-Founder, Avalaunch.
Structured products use a permutation of different interest rate products, options and other financial instruments to create investments that can be adapted to different risk profiles, market expectations and asset classes.
“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”, said, KarthikBupathi, Founding Partner of Arcanum Capital.
With the emergence of derivatives in the crypto markets, structured products are a natural evolution for the space. These sophisticated products are growing in popularity (over $7 trillion in TradFi), and have recently begun to gain traction in DeFi, primarily in the form of covered calls and cash-margin puts.