The tokenized Cash Deficit in the Swivel Finance project is $ 3.5 Million per year.

In Defi’s unstable credit and loan sector, fixed-rate loan services are quickly attracting attention. Landmark financing is the last thing that makes investors dizzy. 

Multicoin Capital once again participated in the final round of the $3.5 million Sitel Finance, accompanied by the trading desks of GSR Markets, SCC Investments and CMT Digital. OKEx Ventures, Fenbushi Capital, IOSG Ventures and SevenX Ventures also contributed to the final round. 

With these additional investments, Octoberel received a total of $ 4.65 million in funds to develop its fixed-rate protocol. According to Jake Dwyer, Managing Director of GSR Markets, this idea is the key to large institutions that want to enter the rapidly growing decentralized financial space.

“The optimizations implemented at Swivel make it attractive for institutions that want to participate in a high-yield growing field,” Dwyer said in a prepared statement. “The lack of liquidity in the space is currently a major obstacle, but Swivel is taking the right steps to increase liquidity in such a fragmented industry.”

Polychain Capital is participating in a $32 million investment to finance elements of the Defi protocol
Currently, the offers on popular credit and borrowing platforms such as Aave and Compound are variable and can fluctuate a lot. Since September, the deposit rate at Aave has dec from 11% to 2%. 

This may not be a problem for retail investors, because profits are profits. But for more buttoned-up outfits, such variability can pose serious risks to portfolio managers.

APY deposit on Aave from September 10, 2021. Source: Aave
Julien founder of Finance Swivel Travers, he told me to decrypt via Telegram, “for businesses, your net worth will not lend not only to generate revenue, but other sources of income (3% and then borrowing under the consumer under 5% such as lending) you’re trying to fulfill monetary obligations,” he said. “If a company has a leveraged position with obligations that must be repaid in the future, it will lead to a reduction in the variable rate

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