Multicoin Capital leads $1.15M seedling in interest rate derivatives protocol Swivel Finance

Multicoin Capital leads $1.15M seed ovoid in interest rate derivatives protocol Swivel Finance

Multicoin Capital, a blockchain and crypto investment firm, announced today that it has led a $1.15M seed ovoid in Swivel Finance, a new decentralized protocol that enables fixed-interest loans and interest rate derivatives. Swivel aims to make crypto more stable, accessible and financially attractive to millions of users around the world. Read more about the protocol in their official white paper.

How Swivel works

  1. Send your

  2. order – Send the order at your desired rate, or place a market order to directly enter into a loan agreement with a counterparty.

  3. Earn interest – Gainguaranteed fixed interest on your principal, or leveraged interest on market interest rates on protocols such as Compound and Aave.

  4. Release your fund

– As soon as the term of your agreement has expired, release your money! The lender on the fixed side will receive its guaranteed return, while the floating side will receive the remaining interest.

“Since the ICO craze of 2017, many market players have left and never returned. We have been thinking about potential catalysts that could bring in the next wave of new users. With interest rates close to historical lows, it is reasonable to expect the next wave of crypto users to come from people who simply want to “earn 10% on their USD”. Several crypto consumer apps are building front-end services for this purpose (Outlet, Linus, Dharma, BlockFi, Celsius, etc.), and they are currently extracting liquidity from (1) centralized liquidity pools, and (2) Compound and Aave. Swivel offers flat rates using the flexible, global, 24/7, no-commitment DeFi-rails that users want. Swivel creates a new opportunity in DeFi. Today, there is no way to speculate on DeFi interest rates. Swivel solves this problem and offers speculators a lot of implicit leverage. Leverage will help bootstrap this burgeoning market, and help Swivel catalyze interest rate derivatives in crypto.While the Swivel protocol starts with fixed-floating swaps, we expect them to continue to add new interest rate derivatives such as floating-floating swaps, swaptions, floors and more


Published on Thu, 10 Dec 2020 21:00:29 +0000