SAN DIEGO, July 9, 2024 /PRNewswire/ -- Term Labs,
Inc., a leader in blockchain R&D, is proud to announce the
closure of a strategic funding round totaling $5.5 million. This brings the company's
cumulative funding to date to $8
million. Leading this round was Electric Capital, with
Maelstrom (Arthur Hayes), Ava Labs
Blizzard Fund, Arete Capital, Inception, Delta Blockchain Fund and
others participating. Angel investors, including Ether.fi founder
and CEO Mike Silagadze, GP and
Founder of Paper Ventures, Danish Chaudhry, Founder and Managing
Partner of Neoclassic Capital, Steve
Lee, Co-host of Up-Only, Ledger Status, Co-host of Into The
Ether Podcast, Eric Conner, and
Co-host of The Edge Podcast, DeFi
Dad, also joined the round.
Term Finance is the first DeFi fixed-rate lending protocol to
operate effectively at institutional scale. Since its inception
last year, Term Finance has serviced over $100 million in volume through its auction-based
fixed-rate lending platform, with consistent weekly clearing
volumes in the seven-figure range. Its auction-based mechanism has
proven effective in setting fair rates, consistently clearing
between the supply and borrow rates on competing variable rate
lending protocols. As a result, borrowers on Term have saved
hundreds of thousands in interest, while lenders have earned
hundreds of thousands more.
"The protocol's success in achieving early institutional
adoption is due in large part to a focus on security, transparency,
and economic risk mitigation," said Dion
Chu, Founder and CEO of Term Finance. Term Finance mitigates
contagion and concentration risk by using isolated and modular
collateral pools and implements oracle safeguards with staleness
and zero price checks, fallback oracles, and sequencer uptime
checks for future rollup deployments. To verify integrity and
correctness of implementation, Term Finance has undergone multiple
code audits, traceable through its public GitHub repo and verified
on-chain and completed formal verification using Certora's CLI.
"We chose to continue our support by leading this round of
funding not only because we believe that the fixed-rate lending
vertical has vast market potential rooted in traditional finance,
but because Term Finance stands out as the only protocol to achieve
fixed-rate lending on-chain at scale. There is demonstrated demand
to borrow at fixed rates against DeFi native assets, and the rise
of RWAs and tokenization represents a large untapped opportunity
for future growth," said Ken Deeter,
General Partner at Electric Capital.
Earlier this year, in partnership with MatrixPort, Term Finance
piloted two auctions backed by permissioned RWAs—a market McKinsey
estimates will reach $2 trillion by
2030.
As part of its ongoing commitment to fostering community
engagement, Term Labs is introducing an invite-only rewards program
aimed at rewarding early adopters for their participation in the
protocol. Early supporters of the protocol have already been
granted access to the program and do not need an invite to
participate. Season 1 of the rewards program is expected to run
through the summer into early fall, providing ample opportunity for
users to engage and benefit from their contributions to the
protocol.
"We're committed to rewarding our community for their active
participation and dedication to our protocol's growth and success,"
said Dion Chu. "This latest round of
funding, combined with the rewards program, will help us capitalize
on our early traction and drive the next wave of adoption,
advancing our mission to realize predictability and stability in
the DeFi ecosystem."
About Term Labs
Term Labs is a blockchain research and development company
dedicated to creating robust, transparent, and scalable fixed-rate
lending solutions onchain. The founding team's combined experience
in finance and big tech is the foundation for its innovative
approach to defi solutions. Its founders have a track record of
managing $1b+ portfolios on both the sell side and buy side at
Citibank, Morgan Stanley, D.E. Shaw, and other institutions), as
well as establishing interest rate benchmarks at exchanges that
have done trillions in volume. They also have substantial technical
backgrounds, including experience at the Amazon blockchain group,
Bloomberg, and Planet Labs.
Media Contact Billy Welch
media@termfinance.io
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