Term Structure Raises $4.25M in Seed Funding to Introduce Fixed-Income Products to DeFi

Taiwanese decentralized finance (DeFi) platform Term Structure, specializing in non-custodial fixed-income protocols for peer-to-peer borrowing and lending, has successfully raised initial funding of USD 4.25 million in a series of seed fundraising rounds. Leading this investment is Cumberland DRW, joined by participants Decima Fund, HashKey Capital, Longling Capital, and MZ Web3 Fund. This seed fundraising effort has made Term Structure’s total funding over $8 million.

Founded in 2022 by Jerry Li and Vincent Li, Term Structure is a blockchain tech company that creates diverse financial products within the DeFi ecosystem. The team plans to offer a comprehensive suite of hedging instruments tailored for both DeFi users and traditional finance (TradFi) institutions.

The team envisions a more equitable and accessible participation in the real economy, allowing individuals worldwide to benefit from these opportunities in a streamlined and inclusive manner. 

Cumberland DRW, expressing its rationale for leading this funding round, shared the company’s views on the new deal. “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,” Cumberland DRW said in its official statement. 

In traditional finance (TradFi), fixed-income products play a crucial role, allowing institutions and individuals to anticipate future cash flows and assess the relative value of various investment opportunities. 

Such products are currently absent in decentralized finance (DeFi). The Term Structure Protocol is bridging this gap by introducing fixed-income products to DeFi users. Through this protocol, users gain access to fixed-income tools, enabling them to earn periodic interest, ensure a dependable income stream, or secure fixed rates to manage funding costs. 

Establishing fundamental fixed-income products also paves the way for the accelerated development of advanced financial instruments, encompassing forwards, futures, and options. These sophisticated tools become important for activities like hedging, valuation, and pricing financial instruments, offering users a more comprehensive financial toolkit within the DeFi space.

By incorporating fixed-income products into the DeFi landscape, the Term Structure Protocol plans to address a current gap and move the market towards a more mature and intricate stage. As users engage with these financial tools, they contribute to the broader evolution of decentralized finance, enhancing its capacity to support various financial activities traditionally associated with centralized systems. 

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