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

Highlights 

• Delta One, a DeFi protocol, raised US$9.1 million in a funding round led by Alameda Research and Ship Capital on April 19. 
• The protocol runs on the Solana blockchain network; it was founded during the Solana Ignition Hackathon in October 2021. 
• The protocol offers yield from complex yield generation strategies through structured products in a simple, user-friendly way. 

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. 

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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. 

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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. 

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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.

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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.

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