DeFi protocol Struct Finance has closed a seed round of $3.9 million to help develop tools to allow ecosystem members to create, invest, and customize decentralized structured products.

A total of twenty-four top name companies have taken part in the funding round for Struct Finance, as follows: Blizzard Fund (Avalanche’s 200 Million fund), Antler, Arcanum Capital, Assymetries Technologies, Avalaunch, AVentures Dao, Bison Fund, Bixin Ventures, Double Peak, FBG Capital, Finality Capital Partners, Infinity Ventures Crypto, Keychain Capital, Lancer Capital, Lucidblue, MC Ventures, QCP Capital, SCC Investments, Skyvision Capital, Spark Digital, Wintermute, Woodstock, Zokyo, and 0xVentures.

Struct Finance will make use of this capital injection to create the necessary tools to allow institutions to customize interest rates products, and to provide options for structuring products better suited to different investor profiles.

Structured products

Structured products combine different interest rates products and options with other financial instruments. This allows for investments that are adaptable to various risk profiles and market expectations. Structured products have been a natural progression of the market since the advent of crypto derivatives. These highly sophisticated products are growing in popularity (over $7 Trillion in TradFi), but they have just started to gain ground in DeFi. They are predominantly covered calls or cash-margined put.

DeFi’s challenges in structuring products

A lot of parameters that are available today on various derivative instruments are set in stone by protocols developers. This leaves investors no choice except to either accept or decline them. These instruments have fragmented liquidity because they offer multiple maturity dates. They also use conservation functions, which can result in significant slippage or changes to the discount rate if higher volumes are traded under lower market depth.

What is Structure Finance?

Struct Finance allows users to tailor interest rates instruments to their needs and mix them with the options offered by the ecosystem. It allows for a wide range of investments options and abstracts risks management. The platform also offers high-competitive yields with various digital assets. The EVM-compatible chains are currently being launched by the team. They plan to expand their reach in the future.

The opinions of investors

“Struct Finance marks our first DeFi Investment into the AVAX Ecosystem. Struct Finance is the leader in templated smart contract templates, thanks to the efforts of Ersin, Miguel, and Louis. This will allow people to create their own financial products on AVAX and other platforms. 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.” – Galen Law-Kun, Founding Partner – Double Peak

“As Defi goes to the next level, the market for derivatives will grow significantly in the future, and the Struct Finance team has the right products to fit the market needs. We are delighted to support this very promising team.” – Jingcheng Li, Managing Director at FBG Capital

“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. This is what Struct offers. It also lets users combine existing instruments, opening up endless possibilities for strategizing. The team behind Struct has done nothing but build and execute around these novel concepts, and it’s an honour to be able to support them on their journey.” Mark Stanwyck, Co-Founder, Avalaunch.

“As new capital enters the market, the need for customized structured products will keep growing. Struct Finance is building the core pillars to enable creation of such customized structured products and we are impressed by Struct’s expertise to simplify complex on-chain transactions. We deeply believe Struct will be the go-to platform for all structured products on Avalanche and are thrilled to back the brilliant team.” – Himanshu Yadav – Founding Partner and CIO of Woodstock

“We are excited by the innovation taking place with Struct and its utility across the Avalanche. We are fully committed at 0xVentures to enabling holistic DeFi evolution. We are proud to be a part of the rapid growth of the protocol, and look forward at collaborating further in the near future.” – 0xVentures

“IVC is thrilled to support Struct Finance’s pioneering vision to introduce and institute structured products within the booming DeFi ecosystem.” Brian Lu, Founding Partner at IVC

“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 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 should be the top choice of institutional investors.

Candice Zhao is Managing Partner of Lancer Capital

“Struct Finance makes creating a custom derivative on-chain easy, fast and cost effective. It is difficult to create and list a new derivative in traditional finance. Struct Finance’s roadmap on allowing investors to create their own structured product is very exciting for our institutional clients!” – Mustafa Yilham, Partner at Bixin Ventures

“Since Satoshi Nakamoto published his white paper on A Peer-To-Peer Electronic Cash System, the question has been how to make the crypto space safe for institutional fund managers, pension funds, and consumers to use. Struct Finance provides the key technology layer to finally allow investors to de-risk their crypto investment decisions while profiting from the promise of this (not-so) new asset class.” – S. Dean

“The Struct Finance team met in the Antler Singapore program. After strong validation of the business plan, Struct Finance was founded by the Struct Finance team. Antler provided pre-Seed financing. Flexible investment products are becoming more important as DeFi’s infrastructure grows. Struct Finance is addressing this with their innovative protocol layer for structured derivatives in DeFi” – Markus Bruderer, Partner, Antler

“As DeFi matures and scales, Struct Finance helps fill the gaps by supporting the demands of institutional and retail investors. This platform allows seamless customization for structured products. It will facilitate mainstream adoption. Zokyp and Buidl Capital are happy to support Struct’s efforts to secure and simplify complex on-chain transactions.” Hartej Sawhney is CEO of Zokyo, and Principal at Buidl Capital.

“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.” – Karthik Bupathi, Founding Partner – Arcanum Capital

“With the Defi markets developing, customized structured products will be flourishing. Struct Finance has begun to build the products necessary for this increasing demand. We are delighted to support this professional and brilliant team to build structured products on Avalanche.” Justin Huang, founder of Asymmetries Technologies

“We are very excited to support Struct Finance, as they are filling a gap in Avalanche DeFi offerings by the instruments and tools that will enable structured products in that space. 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” – Tamer Ovutmen, Founder – AVentures DAO

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