DeFi protocol Struct Finance has closed a seed round of $3.9 million to develop tools that allow the ecosystem to create, invest, and customize decentralized structured products.
Twenty-four of the top companies in the world have participated in the Struct Finance funding round. They include: Antler, Arcanum Capital and Assymetries Technologies; Avalaunch, AVentures Dao; Bison Fund; Bixin Ventures; Double Peak, FBG Capital and Finality Capital Partners. Infinity Ventures Crypto. Keychain Capital. Lancer Capital. Lucidblue. MC Ventures. QCP Capital. SCC Investments. Skyvision Capital. Spark Digital.
Struct Finance will make use of this capital injection to create the tools necessary for institutions to customize interest rate products and to compose structured products better suited to different investor profiles.
Structured products combine different interest rate products, options and financial instruments to create investments that can adapt to various risk profiles, market expectations and asset classes. Structured products have been a natural progression of the crypto market. These highly sophisticated products are growing in popularity (over $7 Trillion in TradFi) and are now gaining ground in DeFi, primarily in the form covered calls and cash margined put.
Creating structured products using DeFi: Challenges
Many of the parameters on derivative instruments today are fixed in nature. They are mainly set by protocol developers. Investors have no choice but take it or leave. Many of these protocols offer fragmented liquidity due to multiple maturity dates. However, they continue to use conservation functions that can result in high slippage or significant changes to discount rates if higher volumes are transacted at low market depth.
What is Struct Finance?
Struct Finance expands the range of on-chain structured products. It allows users to create customized interest rate instruments and combine them with other options in the ecosystem to build superior financial products. This platform allows users to choose from a variety of investment options, including protection levels, complex pricing, risk management, and price transparency. It also offers highly competitive yields on various digital assets. The team is currently working on Avalanche, but plans to expand into other EVM-compatible chains in the near future.
“Struct Finance is our first DeFi Investment in the AVAX Ecosystem. We believe Struct Finance, under the leadership of Ersin, Miguel and Louis, will be the benchmark for templated smart contracts. This allows people to create their own structured financial products on AVAX and other platforms. Double Peak Group is excited to be part of this journey to bring mainstream adoption to DeFi, and in the longer term, support multichain futures for Struct Finance.” Galen Law-Kun Founding Partner, Double Peak
“As Defi moves to the next level the market for derivatives is going to grow significantly in future. The Struct Finance team has products that will meet market needs. We are thrilled to support this team.” – Jingcheng Li (Managing Director, FBG Capital).
“As the crypto markets mature and DeFi takes root it becomes imperative to have sophisticated instruments that can support the needs of institutional and retail investors. This is what Struct offers. It also allows users to combine existing instruments, opening up endless possibilities for strategizing. The Struct team has been building and executing around these innovative concepts for years. It’s an honor to be able to help them along their journey.” – Mark Stanwyck (Co-Founder, Avalaunch).
“Customized structured products will continue to grow in demand as more capital enters the market. Struct Finance is constructing the core pillars that will enable creation of customized structured products. We are impressed by Struct Finance’s ability to simplify complicated on-chain transactions. “We believe Struct Finance will be the platform of choice for all structured products on Avalanche. We are delighted to support the brilliant team.” Himanshu Yadav is a Founding Partner at Woodstock.
“We are thrilled by the innovative work being done with Struct, and its utility in the Avalanche. We at 0xVentures have a deep commitment to the holistic evolution of DeFi. “We are proud to have been a part in the rapid growth and hope to collaborate further in the future.” – 0xVentures
“IVC is delighted to support Struct Finance’s pioneering vision of introducing and instituting structured products within the booming DeFi eco-system.”Brian Lu (founding partner at IVC)
“Investors and institutions face constant swings in yields, token prices, and uncertainty caused by complex derivative protocols. Struct Finance brings structured financial products to DeFi. This allows investors to receive attractive stablecoin yields and simplifies the process. Their team is admirable and fixed income products will be the first choice of institutional investors.
Candice Zhao, Managing Partner of Lancer Capital
Struct Finance makes it easy to create a custom derivative on-chain. It is also fast and affordable. The process of creating and listing a new derivative in the traditional financial system is complex. Our institutional clients !” are excited about Struct Finance’s plan to allow them to create their own structured products. – Mustafa Yilham Partner at Bixin Ventures
“Since Satoshi Nakamoto’s white paper on A Peer to-Peer Electronic Cash System was published, the question has been: How can institutional fund managers, pension funds and consumers make crypto safe to use?” Struct Finance is the technology layer that allows investors to de-risk crypto investment decisions and still reap the benefits of this promising asset class. Dean
“The Struct Finance team met at the Antler Singapore program. After strong validation of their business idea the team formed Struct Finance. Antler provided pre-Seed financing. There is an increasing demand for flexible investment products as the DeFi infrastructure develops. Struct Finance addresses this issue with their innovative protocol layer in DeFi for structured derivatives” – Markus Bruderer Partner, Antler
Struct Finance fills the gaps in DeFi’s maturity and scale by meeting the needs of institutional and retail investors. The platform allows seamless customization of structured products and will accelerate mainstream adoption. Zokyp, Buidl Capital and Hartej Sawhney are pleased to support Struct in their efforts to simplify and secure complex on-chain transactions .” Hartej Sawhney is CEO at Zokyo as well as Principal at Buidl Capital.
“We chose to support Struct Finance as they create a cross-chain solution that allows both retail and institutional participants to launch their own structured products without limiting design options, allowing them to be more innovative in investing.” Karthik Bupathi, Founding partner – Arcanum Capital
“Customized structured products will flourish as the Defi markets develop,” says Struct Finance. Struct Finance is developing the core products necessary to meet this increasing demand. We are thrilled to support this brilliant and professional team to build structured products for Avalanche.” Justin Huang (Founder of Asymmetries Technologies)
Struct Finance is a great company to support. They fill a gap in Avalanche DeFi offerings with the tools and instruments that will allow structured products in that area. We believe that the next wave in DeFi growth will come from Options, Perpetuals and Structured Finance, where Struct Finance is a key protocol.” Tamer Ovutmen, Founder – AVentures DAO