Solana-based DeFi platform Texture has now raised a total of $5 million in a fundraising round to boost the development of products focused on yield management. The funding is led by prominent investors such as P2P Capital and Sino Global. Others include Wintermute, Semantic Ventures, and Jane Street Capital.
“We are excited to receive backing from such an amazing group of both institutional and angel investors, many of whom have been actively building in the space for years, so are very familiar with the challenges and intricacies of DeFi,” said Texture’s co-founder Oleg Ravnushkin.
He added that as this round is well-funded, Texture now has a runway to develop and scale over the next couple of years. “Next stop – beta launch at Breakpoint 2022 and full launch soon after!”
Details on The Fund Raised
Texture is a Solana-based DeFi platform focused on yield management and maximization across Solana-based yield sources. Using the funds raised, Texture would introduce various yield-generation and structuring solutions that include a handful of strategy pools classified by risk and type of yield alongside corresponding optimization features.
Per the announcement, the strategy will be a “SOL Power Yield Strategy” pool by Texture. The pool will utilize an algorithmic leveraged staking strategy to generate more value from users’ SOL (Solana) staking positions.
The strategy is mechanized by integrating Lido for liquid staking, Solend’s main pool for depositing stSOL, and borrowing SOL and Orca for swapping harvested rewards to automate compounding. To automate the strategy, Texture’s smart contracts apply algorithmic risk management interactively monitoring and rebalancing the pool’s LTV, minimizing liquidation risk.
Furthermore, the protocol exhibits a Solana-based leveraged staking strategy, whereby users generate yield on their SOL while handling minimal liquidation risk.
Konstantin Lomashuk, Founder of P2P, stated, “P2P is excited to support the Texture team on a quest to provide better yield products to the Solana community. We are looking forward to potential collaborations in the future.”
To conclude, Thomas Tang, VP of Investment from Sino Global Capital, also commented, saying the firm is glad to back Texture in developing the algorithmic strategies that deploy capital across multiple protocols to optimize yield for users. “We’re excited for their first product – leveraged SOL staking with algorithmic risk management and rebalancing,” Thomas concluded.
Other Firms Raising Funds In The Industry
Texture is not the only platform raising funds. Last month startup firm Cryptosat raised $3 million in a seed funding round. As reported by Blockchain Reporter, the funds raised were intended to promote Cryptosat objective of building several cryptographic applications that are physically isolated and housed in an orbiting spacecraft.