Struct Finance has secured $3.9 million in a seed round of funding. It will develop instruments that would allow the ecosystem to create, adapt, and invest in decentralised structured products.
Struct Finance and seed funding
A decentralised finance (DeFi) technology platform Struct Finance has raised USD 3.9 million in a seed round of funding. It intends to use the new funding in building tools for institutions to quickly personalise their interest rate products. It is also planning to combine them to construct “structured products” that may appeal to the profiles of different investors. Struct Finance intends to use structured financial products to address present inefficiencies in DeFi money markets.
By utilising existing smart contracts, the DeFi protocol’s products will tokenize a range of yield-bearing positions and sophisticated derivatives. It will provide market participants with a simple investment product matched to their risk profile.
Structured products have expanded in parallel with the entire DeFi industry in the previous two years, focusing on widening exposure in a simple yet cost-effective manner. The aim is to improve capital efficiency and adjustable investment techniques to let investors and liquidity providers with various risk appetites benefit from the high yields.
Investors in seed funding round
Twenty-four firms lead the fundraising round. These include the Blizzard Fund of the Avalanche ecosystem, Antler, Infinity Ventures Crypto, Arcanum Capital, Avalaunch, Assymetries Technologies, Double Peak, and AVentures Dao.
Struct Finance is Double Peak’s first DeFi investment into the Avalanche Ecosystem, according to Founding Partner Galen Law-Kun. He believes that Struct Finance will establish the gold standard for templated smart contracts. As a result, anyone will be able to quickly deploy their structured financial products on AVAX or other ecosystems.
Avalaunch Co-Founder Mark Stanwyck emphasised the need for complex instruments that can meet the needs of both institutional and individual investors.