The DeFi market is currently ruling the crypto landscape with its wide range of offerings while ensuring end-to-end encryption and security for Web3 users. By providing financial services such as lending, borrowing, and yield farming, the DeFi sector has caught investors’ attention recently. As the industry continues to expand, the need for effective wealth management strategies in DeFi has become increasingly evident. To address this demand, Teahouse Finance, a DeFi wealth management platform, has announced raising $5 million in a recent funding round to develop its offerings further and help users optimize their DeFi investments.
Terahouse Aims To Solve Concentrated Liquidity Provision Challenges
Teahouse Finance, a decentralized asset management and strategy platform provider, has raised a total of $5 million in funding, with a recent $2 million financing round led by AppWorks, a leading VC firm and accelerator in Southeast Asia. Other participants in the funding round included Pantera Capital, NGC Ventures, Perpetual Protocol, and more. Founded in 2021, Teahouse Finance aims to tackle the challenges of concentrated liquidity provision in decentralized finance (DeFi).
Since Uniswap pioneered the Automated Market Maker (AMM) concept in 2018 and introduced concentrated liquidity in 2021, providing liquidity on AMMs remains complex and often unprofitable. Teahouse Finance’s dynamic algorithms and smart contracts manage users’ funds, functioning like an investment portfolio while allowing users to enter and exit on a weekly basis. The platform’s strategies dynamically adjust liquidity pool ranges and hedge positions, maximizing trading fees while minimizing impermanent loss.
In addition to liquidity provision, the company has introduced seven DeFi strategy vaults across various chains, enabling individuals and organizations to invest and generate profits in Web3 seamlessly. Initially exclusive to Teahouse NFT holders, the firm launched its first public liquidity provision strategy in January, which currently boasts an impressive average APR of 54.37%.
Terahouse Finance To Launch Terahouse Private Vaults
Teahouse Finance is gearing up to launch Teahouse Private Vaults, an enterprise-ready B2B product aimed at democratizing DeFi, alongside its core focus on projects like Perpetual Protocol and Chainlink. These specialized vaults, complete with dedicated smart contracts for each investor, are operated by Safe’s multi-sig wallets, gated by NFTs, and protected by action filters that permit only select transactions to take place. Designed to provide a safe haven for Web3 projects and traditional businesses looking to diversify into cryptocurrencies, Teahouse Private Vaults are slated for release in Q2.
Fenix Hsu, Teahouse co-founder and CEO, said, “With the recent collapse of trust in CEXes due to underhanded dealings by ex-industry-leaders like FTX, it is now more critical than ever to provide secure and transparent investment options that reside on-chain. We continue to focus on solving the hardest challenges (such as concentrated liquidity provision), educating the community, and building an awesome ecosystem with our partners.”
AppWorks’ fresh funding will go towards creating new products and strategies, as well as enhancing the security of the asset management platform. This comes at a time when there is a growing trend towards transparent on-chain solutions.
Jessica Liu, Partner at AppWorks, said, “The awareness of decentralization rises again as centralized services have caused several problems. Teahouse fills the market gap by providing asset management services in a fully decentralized way and allowing enterprise clients to optimize returns on DeFi products by better utilizing the liquidity. As the Web3 industry continues to grow, AppWorks will continue to support founders within our ecosystem.”
As the DeFi sector matures, the importance of effective wealth management strategies cannot be overstated. Platforms like Teahouse Finance will play a crucial role in helping investors make informed decisions and maximize their returns in the rapidly growing market of cryptocurrencies.
