• Struct Finance, backed by Ava Labs, launched customizable interest rate products on the mainnet.
• The platform allows users to invest in products tailored to their risk-return preferences and offers predictable and diversified returns.
• An innovative tranching mechanism is used to split and repackage the risk of yield-bearing DeFi assets in various ways.
Struct Finance Launches Customizable Interest Rate Products
Struct Finance, supported by Ava Labs, has launched a suite of customizable interest rate products on the mainnet. This DeFi platform enables investors to interact with structured financial products tied to digital assets that can be tailored to meet individual risk-return preferences. The launch includes an innovative tranching mechanism that splits and repackages the risk of yield-bearing DeFi assets in multiple ways for all levels of risk tolerance.
Investors Access Risk-Return Dynamics Different from Underlying Assets
Structured financial products are developed from and connected to underlying on-chain or physical assets, allowing investors access to different risk-return dynamics than the underlying asset itself. Through this platform, tokens, tokenized derivatives, vaults, pools, and protocols interact freely so that new investment opportunities may be created for any investor’s needs.
Tranching Mechanism Enables Cautious Investors
The tranching mechanism used by Struct Finance makes it accessible even for those who have been more cautious about investing in DeFi projects due to its volatility. This system allows investors to split up their investments into two different tranches: one with a fixed return (10%) at reduced risk; and one with variable returns (up to 65%) at greater risk.
Mission To Bring Power Of Financial Products To Everyone
Miguel Depaz – one of Struct’s Co-founders – stated that their mission is “to bring the power of such products [structured financial]products] to investors with all risk appetites” so that these solutions are accessible regardless of experience level or size of capital available for investments.
This launch provides users with access a range of customizable interest rate products brought through Struct Finance’s cutting edge technology which can now be accessed on the mainnet. These solutions are designed for both institutions and smaller players alike who may now enjoy predictable and diversified returns without fear of volatile markets in crypto space