Struct Finance – a Decentralized Finance (DeFi) platform that allows customers to engage with tailored structured monetary products linked to cryptocurrencies – announced the mainnet launch of its tranching mechanism and innovative Interest Rate Vaults. The initiative enables users to invest in products according to risk tolerance, providing predictable returns. Reaching Investors With ‘All Risk Appetites’ According to a document seen by CryptoPotato, Struct Finance’s new option grants clients the opportunity to split the risk of any yield-bearing DeFi assets in different parts so it can fit into all strategies. The process is called tranching and provides two types of returns: a fixed one for conservative investors and a variable that is suitable for those ready to
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Struct Finance – a Decentralized Finance (DeFi) platform that allows customers to engage with tailored structured monetary products linked to cryptocurrencies – announced the mainnet launch of its tranching mechanism and innovative Interest Rate Vaults.
The initiative enables users to invest in products according to risk tolerance, providing predictable returns.
Reaching Investors With ‘All Risk Appetites’
According to a document seen by CryptoPotato, Struct Finance’s new option grants clients the opportunity to split the risk of any yield-bearing DeFi assets in different parts so it can fit into all strategies. The process is called tranching and provides two types of returns: a fixed one for conservative investors and a variable that is suitable for those ready to experience higher risk and volatility.
The yield from the underlying asset is first distributed to the fixed tranche. The remaining funds are then transferred to the variable tranche, which gets additional exposure to the initially-picked investment choice. It is worth noting that investors who select the variable type of returns could be left with no yield in the aftermath.
While Struct Finance has established an initial limit per tranche to offer maximum protection, it plans to raise that cap in the future. Sharing more details on the newly-launched products was Miguel Depaz – one of the co-founders:
“Traditional financial products aren’t permissionless to use or create. In fact, they are largely inaccessible to most people. We are making these structured financial products accessible and easy to understand for everyone.
Our mission at Struct is to bring the power of such products to investors with all risk appetites, from the risk-averse newcomer to the seasoned crypto native. That’s why we are launching Interest Rate Vaults as the first in our line-up of tailored financial products.”
The DeFi platform intends to launch another feature called the Struct Factory. The latter will allow users to design their preferred financial products based on their personal needs. It will also let investors use digital currencies, such as BTC.b, USDC, AVAX, or WETH.
Subsequently, Struct Finance collaborated with crypto exchange GMX and added its liquidity provider token GLP into the yield offering.
“By utilizing GLP, Struct Finance provides users with a fixed and variable yield while simultaneously offering liquidity to GMX through the GLP token. This integration enables Struct Finance to optimize returns for its users while supporting the liquidity needs of the GMX platform,” the organization stated.
Last Year’s Fundraiser
The platform secured a $3.9 million funding round in March 2022 in a bid to upgrade its interest rate products and provide additional options for investors.
The financing was led by multiple companies, including Avalanche ecosystem’s Blizzard Fund, Bison Fund, Bixin Ventures, Double Peak, FBG Capital, AVentures Dao, Arcanum Capital, and more.