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Struct.Fi Announces a $3.9 Million To Continue DeFi’s Evolution Into Decentralized Structured Products

Written by: Mustafa Mulla

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Mustafa Mulla

Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.

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Mar 22, 2022

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In times of financial uncertainty, investors will seek out a diversified portfolio. one way of achieving the goal is through structured products, as they provide exposure to underlying assets or vehicles.

As a result, Struct Finance wants to enhance the appeal of structured products in DeFi, and investors agree there is a strong demand for such solutions. 

Structured Products Are Big Business

Most people may not necessarily know the term “structured product,” even though they have interacted with one or more vehicles in their lifetime.

A structured product is an investment vehicle deriving value or performance from underlying assets, including stocks, bonds, indices, currencies, etc.

It is a very appealing option for investors who want to increase their exposure to different vehicles and experiment with risk-based strategies.

Today, structured products represent a $7 trillion market in the finance sector. It is plausible to assume even more people will seek exposure to these types of vehicles, as they offer a small degree of customization.

However, there are also some downsides to consider where centralized service providers are concerned. Investors have to use the available options rather than gain customization features based on risk appetite.

Another good example of structured products is derivatives, a popular tool in the cryptocurrency industry. Enhancing the appeal of seeking cryptocurrency exposure through different vehicles and profiles is necessary.

Momentum has begun to brew in decentralized finance, where covered calls and cash-margin puts find a growing audience. However, that would require a way to adjust the different parameters associated with derivative instruments.

In the current landscape, protocol developers put those parameters in place. Although dealing with static parameters is never ideal, it is a logical approach.

Struct Finance aims to change the narrative to provide investors with many more options. Additionally, a customization-based system will negate the issue of fragmented liquidity when dealing with various maturity dates.

Furthermore, these decentralized structured products do not suffer from high slippage or unwelcome changes to discount rates. 

Decentralization Through Struct Finance

Achieving exposure to decentralized structured products is possible with the help of Struct Finance. The team focuses on enhancing the number of on-chain structured products by letting users customize interest rate instruments.

Additionally, they can compose those instruments with options available in the ecosystem. As a result, anyone can build their preferred structured products, regardless of how complex it becomes. 

Build Capital Principal, and Zokyo CEO Hartej Sawhney adds:

“As DeFi matures and scales, Struct Finance helps fill the gaps by supporting the demands of institutional and retail investors. By enabling the seamless customization of structured products, the platform will help accelerate mainstream adoption. Zokyp and Build Capital are happy to support Struct’s efforts to secure and simplify complex on-chain transactions.”

Creating more investment choices is a clear sign of how decentralized finance continues to progress. It is a booming ecosystem representing over $220 billion in Total Value Locked today.

There is a market worth over $7 trillion in liquidity to tackle by enabling structured products with more customization options.

Investors will benefit from varying protection levels, highly-competitive yields, and more. 

A $3.9 Million Funding Round

The vision by Struct Finance strikes a chord with numerous investors and VCs. Decentralized finance has introduced tremendous new opportunities to improve global financial inclusion.

More importantly, the industry continues to grow and evolve, offering investors exposure to many different products, services, and vehicles.

The addition of decentralized structured products can enhance the industry’s appeal among mainstream investors, speculators, and enthusiasts. 

Assymetries Technologies Founder Justin Huang comments:

“With the Defi markets developing, customized structured products will be flourishing. Struct Finance is building the core products to meet this growing demand. We are delighted to support this professional and brilliant team to build structured products on Avalanche.” 

Struct Finance attracted $3.9 million in seed funding from two dozen companies. The round saw participation from Assymetries Technologies, FBH Capital, Skcvision Capital.

AVentures DAO, Double Peak, Zokyo, 0xVentures, and many others. The capital will enable Struct Finance to build out the tools for institutions to easily and conveniently customize interest rate products. These vehicles can gain composability with options to create better-structured products aligned with the profiles of individual investors. 

The Struct Finance products will support various digital assets. The protocol will launch on the Avalanche blockchain initially but will scale into other blockchains with EVM compatibility in the future. 

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Mustafa Mulla

Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.

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