Quick take:
- The seed round brings the total raised to date to $8 million.
- The company said it will use the funds to accelerate the development of its non-custodial fixed-income DeFi protocol.
- Term Structure allows users to earn periodic interest from fixed-income products ensuring a reliable income stream to control funding costs.
Term Structure has announced a $4.25 million funding round for a non-custodial fixed-income DeFi protocol. The fundraising also attracted participation from Decima Fund, HashKey Capital, Longling Capital, and MZ Web3 Fund.
The platform provides users with peer-to-peer, fixed-rate, and fixed-term borrowing and lending in decentralized finance (DeFi). The latest fundraising brings the total raised to $8 million. The company raised $2.5 million in a pre-seed round disclosed in September 2022, according to CrunchBase.
Commenting on its decision to lead the round, Cumberland DRW said: “Fixed income products are a foundational element of traditional financial market structure, and demand for these products in DeFi markets is an important signal of the increasing maturity in this market sector.”
The venture capital firm highlighted Term Structure’s strong leadership as one of the reasons the investment is exciting. “[It] reflects our commitment to investing in innovative solutions that solve real market needs.”
Term Structure wants to support the development of fixed-income TradFi products in decentralised finance, which it believes will allow companies and individuals in the DeFi space to predict future cash flows and evaluate the relative value of different investment opportunities.
According to Term Structure, its platform allows users to use fixed-income products to earn periodic interest to ensure a reliable income stream or secure fixed rates to control funding costs.
Term Structure is now live on the Ethereum testnet Goerli. Users can place orders to borrow or lend tokens with fixed interest rates and fixed maturity dates, while lenders receive fixed-income tokens, redeemable for principal plus interest upon maturity.
The platform also allows users to buy and sell fixed-income tokens through the orderbook trading system in the secondary market.
****
Stay up to date:
Subscribe to our newsletter using this link – we won’t spam!
