Delta One raises US$9.1 mn to develop crypto ‘yield’ products

DeFi protocol Delta One raised US$9.1 million in a seed funding round led by Alameda Research and Ship Capital on April 19. The protocol provides sustainable yield strategies.

Those who participated in the funding round included Solana Ventures, Raj Gokal, AlleyCorp, Chris McCann, Joe McCann, Electric Capital, and Alfred Chuang. 

Delta One runs on the Solana blockchain network. It was founded during the Solana Ignition Hackathon in October 2021. Its founders are Paul and DJ Sengh.

The company plans to use the funds to integrate more projects into the protocol and overall ecosystem growth. The protocol offers complex yield generation strategies through its structured products in a simple, user-friendly way.

Its automated delta-neutral strategies offer risk-adjusted yields to users. 

Also Read: Why is MXC (MXC) token up more than 100% year-to-date?

 Also Read: Crypto firm Beanstalk (BEAN) seeks FBI help after hacker loots US$80 Mn

According to its blog post, the company launched the Delta One on April 18. 

The protocol offers two types of vaults: lending and delta-neutral yield farming. The lending vault generates a high yield by lending on Solana ecosystems. The delta-neutral farming vault offers complex trading strategies with a single click. 

Farmers can deposit USDC to create a delta-neutral position that auto compounds rewards and set automated rebalancing. 

Also Read: Why is Audius (AUDIO) crypto rising?

The protocol’s desirability can be guessed with the waitlist of more than 100,000 participants since its inception last year. The DeFi protocol has over 10,000 members. 

Many hedge funds use the Delta-Neutral farming technique to adjust risks. However, it demands hours of research and tracking positions if done manually. Delta One intends to democratize the complex investment strategies for retail investors. The protocol has created structured products for the ease of people to invest and generate yield, said DJ Sengh. 

Also Read: What is Pacman Frog (PAC) crypto and why is it trending?

The protocol is also working with teams to form new lending markets, create novel options products, reserve currencies, etc. While the protocol aims to democratize the yield, at the same time, it also works with institutional investors to create strategies to support liquidity.

“In TradFi, delta-neutral strategies remain exclusive to large funds with professional traders, but decentralized products like Delta One aim to let everyone participate,” said Brian Lee, partner at FTX Ventures.

Also Read: Is Algorand (ALGO) crypto darkening Times Square for Earth Day?

Bottom line:

The protocol’s smart contracts have been reviewed by experienced developers in the Solana ecosystem but not by professionals. The website says it is in the process to get additional audits done. The protocol runs Soteria on its smart contracts when software changes.

Risk Disclosure: Trading in cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory, or political events. The laws that apply to crypto products (and how a particular crypto product is regulated) may change. Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading in the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed. Kalkine Media cannot and does not represent or guarantee that any of the information/data available here is accurate, reliable, current, complete or appropriate for your needs. Kalkine Media will not accept liability for any loss or damage as a result of your trading or your reliance on the information shared on this website.