DeFi lending protocol startup Swivel Finance raises $1.15 million in seed funding
Swivel Finance has raised $1.15 million in a seed round led by investment firm Multicoin Capital.
The seed round included investments from Electric Capital, CMS Holdings, Defiance Capital and Divergence Ventures. Several angel investors also participated in the round, including Huobi corporate investment advisor Alex Pack and Aave founder Stani Kulechov.
According to the team behind the project, Swivel will use the new funds to hire additional engineers as well as launch the protocol on the Ethereum mainnet in the next few months.
Swivel is a decentralized protocol for fixed-rate lending and interest-rate derivatives that enables lenders to "lock-in" fixed-rate interest rates on their ERC-20 tokens with low transaction overhead and less risk.
“We’ve been hearing lenders ask for fixed-rate products for a long time, but when it came to backing those fixed-rates, the incentives just weren’t there previously,” said Swivel Finance co-founder Julian Traversa. “With the addition of interest-rate swaps, speculators can freely take on floating-rate leverage and ‘farm’ in the process, clarifying these incentives while creating both a demand curve for fixed-rate lending and a decentralized yield curve.”
