Introducing Struct Finance
Struct Finance is a DeFi platform that specializes in structured finance, offering a wide range of structured financial products tailored to the needs of both retail and institutional investors. Their innovative Tranching mechanism, the first in their planned lineup of product offerings, enables diversified investment opportunities across a wide array of markets through interest rate vaults.Their vision is to foster effective and efficient markets by distributing risk, enhancing capital efficiency, expanding investment options, and bridging the gap between the digital and real-world economies. With the ability to create structured financial products from both on-chain and off-chain assets, they align with the future direction of Avalanche and strive to bring new possibilities to the DeFi landscape. The Struct team started at Antlers VC accelerator and won some prizes at the Winternmute hackathon and the Chainlink Fall Hackathon 2021.
Who Powers Struct Finance?
Struct’s team consists of 8 highly skilled individuals which came together from 5 continents. They believe in the power of diversity and have cultivated a strong sense of camaraderie and synergy. Each team member is a specialist in their respective field, bringing valuable expertise to the table. Their backgrounds cover a wide range of areas, including blockchain, venture building, business management, software development, architecture, and more. In the blockchain field, they have a wealth of experience, allowing them to navigate the intricacies of DeFi and structured financial products with confidence. Moreover, their founders have extensive entrepreneurial backgrounds, and some team members have previously worked for reputable companies like France Telecom, Rocket Internet, Deutsche Bank, and Thomson Reuters. These experiences have honed their abilities to tackle challenges and deliver high-quality solutions.Struct is passionate about pushing the boundaries of DeFi and creating innovative financial products. They value continuous learning and cross-pollination of ideas, enabling them to stay at the forefront of the rapidly evolving blockchain industry. With a firm belief in the potential of Avalanche and a commitment to shaping the future of DeFi, they are excited about the opportunities ahead and the impact they can make in the world of structured finance.
Democratizing Structured Finance
At its core, Struct Finance’s mission is to democratize access to structured financial products, ensuring they’re not just the domain of the seasoned investor. Their Interest Rate Products, for instance, are designed to make the complex world of finance more accessible to all. By offering stable interest yields on one side and catering to those craving a boosted variable yield on the other, they transform a traditionally zero-sum game into a win-win for all.Their tranching method is nothing short of revolutionary. By dividing yield-bearing assets into Senior and Junior tranches, they cater to both risk-averse and risk-friendly investors. This fascinating dynamic, coupled with their “waterfall mechanic”, promises to redefine the DeFi investment landscape. The Senior (stable-rate) tranche is the first basin that the yield flows into. Once the senior tranche has accrued enough yield to provide the stable-rate investors with their guaranteed returns, all of the remaining yield flows to the variable-yield tranche. The Junior (variable-rate) tranche thereby uses additional leverage of the senior tranche to boost its own yields. However, compared to the variable tranche, this tranche may result in higher, lower or equal yield depending on the performance of the underlying yield-bearing asset. This interesting dynamic makes these Interest Rate Products extremely attractive for risk-on and risk-off investors as they both have options to invest in a tranche that accounts for their risk-reward preferences.
Road So Far & The Journey Ahead
Their first vault was their USDC-USDC Vault, built on top of leading perp-exchange GMX’s GLP. Users were able to deposit USDC in either of their senior or junior tranches. The senior (stable-rate) tranche offered a guaranteed return of 10% per annum, whereas the junior (variable-rate) tranches were able to provide a boosted return of over 200% per annum! The success of their USDC-USDC Vaults led Struct FInance to launch their follow-on vault – a BTC.b-USDC Vault. Users can deposit their BTC.b in these vaults to get a guaranteed, stable return of 10% on their BTC.b deposits, thereby making Struct Finance one of the most attractive places for users to deposit their Bitcoin! In addition, they recently launched their BTC.b-BTC.b and BTC.b-wETH markets. The success of these vaults has been seen through the rapid rise in TVL locked within the platform. In just six weeks, Struct Finance has shot up to the top 23 DeFi protocols on Avalanche with over $1.96M in TVL and has seen an impressive 24.61% growth in TVL over the last seven days! Their vaults have continued to provide investors with great returns. We are excited to see the growth of the protocol when they introduce even more vaults built upon other types of yield-bearing assets as well!Struct Finance is an ambitious entity with a grand vision for the future. Their aspirations for the platform expand far beyond mere interest-rate products. As they gear up, they’re aiming to tap into diverse types of yield sources, differentiating yield, and consistently evolving their product lineup to match the market’s cutting-edge innovations.The team at Struct believes that virtually everything can be tranched, and they are poised to be the pioneers in this space. From Liquidity Pools, Foreign Exchange, and RWAs to LSDs, LSDfi, and LRTs, the potential avenues they might venture into are expansive. This commitment arises from a core belief that the principle of tranching the risk of assets is universal, spanning multiple asset classes. The products and initiatives on Struct’s horizon promise to embody this tenet.
Furthermore, Struct is profoundly dedicated to elevating risk management and transforming risk in the DeFi sector. They aim to design investment products that cater to varied risk preferences. Currently, the spotlight is on their newest offering, Trader Joe Auto-Pools, a fresh take on Liquidity Provision. We at Woodstock Fund are extremely excited to back the Struct Finance team. Their offerings bridge the gap, ensuring there’s something for everyone in the DeFi space. Be it a conservative investor or an adrenaline-chasing trader; Struct Finance has got it covered. We are optimistic about their journey ahead and are keen to witness them making waves in the global structured finance domain.
If Struct Finance has piqued your interest, delve deeper:
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Disclaimer:
Woodstock is an investor in Struct. Every financial product, asset class, or investment has risk. A digital asset (also known as digital tokens, digital coins, or crypto(s)) is no different. That is why it is important for users and limited partners to be aware of the potential risks present in digital assets and blockchain projects. You should not invest funds in the digital assets market that you are not prepared to completely lose; i.e., only allocate risk capital to digital tokens. Furthermore, we will not accept liability for any loss or damage that may arise directly or indirectly from any such investments.
