Swivel Finance Raises An Additional $3.5m to Optimize Fixed-Yield Markets
Swivel Finance adds a number of top tier investors and trading desks in a push to bring capital efficiency to fixed-yields.
Since closing our seed round in December of last year, our team has been heads down iterating on the Swivel v1 design in order to build the most capital efficient and user friendly infrastructure possible for fixed-yields.
With our mainnet near, we’re excited to announce the onboarding of multiple world-class trading desks and investors to ensure the scalability of our organization, and the liquidity of our platform.
This strategic financing includes follow-on investments from leading funds, Multicoin Capital and CMT Digital, as well as top Asian funds, IOSG Ventures, Fenbushi Capital, SevenX Ventures, and OkEx.
Alongside the round we have onboarded a number of crucial partners — top crypto trading desks GSR Markets and SCC Investments, as well as two additional desks yet to be announced, and one additional venture fund currently in-stealth.
These new partnerships and investors ensure we can scale our organization, as well as ensure sufficient market liquidity for our launch and future growth.
New angels/advisors include:
Ryan Selkis (Messari)
Ajit Tripathi (Aave)
Matt Batsinelas (Unnanounced / Ex-Altonomy)
About Swivel
The core of our design is built around a simple concept: Swivel splits yield-bearing assets into two cash-flows, zcTokens (principal redemption) and nTokens (future-yield).
This design allows lenders to purchase a zcToken at a discount for a fixed-yield, or alternatively sell their nTokens (future-yield) for an immediate fixed-premium.
Swivel v2 iterates upon this concept with a market-tailored orderbook that reduces costs for users and significantly increases capital efficiency for LPs.
Mission
Our mission is to build the democratized infrastructure necessary to enable high fixed-rates without sacrificing decentralization, capital efficiency or transaction costs.
Decentralized fixed-rate lending is poised to grow by magnitudes in the coming year, however current solutions fail to provide the UX necessary for wider institutional adoption.
We’ve written in depth on what sets Swivel’s protocol and orderbook apart in the past:
The tl;dr: We enable high fixed-rates without sacrificing capital efficiency and bloating user costs.
Comparatively, we offer:
Significantly enhanced capital efficiency
Efficient liquidity management (Δ rates, Δ vol, theta)
Low Slippage
Gas-free limit orders
One-click market orders
New Partners & Liquidity
Over the past year, we have found that many institutions (and degens) want to provide liquidity to fixed-yield markets but find it difficult to do so due to market fragmentation and a currently nascent AMM design space, resulting in illiquid markets.
With this low liquidity, institutional lenders find the slippage inherent to AMMs even more punishing, for many completely preventing their participation. We’ve addressed these issues with Swivel v2.
“… We are excited to see Swivel bring some much-needed innovation in the fixed-yield market. Swivel is unique in implementing an orderbook style market that will improve liquidity through a familiar and capital efficient marketplace. ”
- Brad Koeppen, CMT Digital
“Swivel is among a group of innovative new protocols that address the fixed-yield market, however Swivel is unique in that the team has attempted to implement an orderbook that will provide institutions a familiar liquidity provision experience and minimal slippage.”
- Jake Dwyer, GSR Markets
“The team at Swivel has been committed to bringing an optimal UX to fixed-yields since day one and the innovation Swivel has in the pipeline is exciting. We’re happy to support such a great team and look forward to utilizing Swivel v2.”
- Spencer Applebaum, Multicoin Capital
Whats Next
With the new round, we’re scaling our team in all directions in order to keep ramping up our growth. We’re hiring engineers, data scientists, quants, artists, and shitposters.
Whether you’re a dev or a degen, we’ve got room for you so if a position doesn’t quite fit feel free to reach out on discord or through email.
And don’t forget to check out our recently launched Swivel v2 testnet! Drop by some feedback in our discord, and prove your worth to end up as one of the b̵̞̹̼͚̆̋̀̌o̵̥̤̗̿a̶͕͉̍r̶͙͊d̴̢̐͐͆́r̸̯͎̱̹̽̓͋̂o̶͔͍̔̑̈̑o̶̯̻͝m̵̝̪̭͕̽!
We’ve got a lot to come in the next couple weeks regarding our token, governance, and incentives as our mainnet launch inches closer.
Keep an eye peeled because the best is yet to come!
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