Teahouse Finance, a decentralised asset management and strategy platform provider, has raised a total of $5m in funding.
The round was led by AppWorks and also saw participation from Pantera Capital, NGC Ventures, Perpetual Protocol and other investors.
Founded in 2021, Teahouse Finance was started to solve what it claims is the ‘concentrated liquidity provision’ problem.
With the use of dynamic algorithms, Teahouse smart contracts manage users’ funds on their behalf, similar to an investment portfolio with the added benefit that users can enter/exit on a weekly basis.
Strategies take various inputs including market volatility to dynamically adjust the liquidity pool ranges and hedge positions to maximize trading fees made while keeping impermanent loss contained.
The company has launched a total of seven DeFi strategy vaults across multiple chains to help individuals and organizations to easily invest and become more profitable on Web3.
Initially restricted to Teahouse NFT holders, in January of this year, the company released its first publicly available liquidity provision strategy, which currently boasts an average APR of 54.37%.
The new funding will be used to develop new products and strategies as well as improving the security of the asset management platform.
Teahouse co-founder and CEO Fenix Hsu 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.”
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