Term Structure Labs Secures $4.25 Million Funding for DeFi Protocol Expansion

November 30, 2023

Author: Karan Bodh
Term Structure Labs Secures $4.25 Million Funding for DeFi Protocol Expansion

Term Structure Labs, a Taiwanese decentralised finance (DeFi) platform, has recently secured significant funding, signalling a growing interest in non-custodial fixed-income protocols within the crypto space. With a $4.25 million investment round led by Cumberland DRW, along with participation from Decima Fund, HashKey Capital, Longling Capital, and MZ Web3 Fund, Term Structure Labs aims to revolutionise borrowing and lending in DeFi.

The platform offers a unique proposition, providing users with peer-to-peer, fixed-rate, and fixed-term borrowing and lending solutions. This latest funding round brings their total raised capital to over $8 million, a testament to investor confidence in the project's potential.

Cumberland DRW, one of the leading participants in the funding round, emphasised the importance of fixed-income products in both traditional and decentralized financial markets. They noted that the demand for such products in DeFi signals the increasing maturity of the sector.

Term Structure Labs stands out not only for its innovative approach but also for its strong leadership. Investors are particularly excited about the company's commitment to addressing real market needs and its potential to drive significant advancements in DeFi.

The platform's primary goal is to bridge the gap between traditional finance (TradFi) and decentralised finance (DeFi) by introducing fixed-income products to the latter. These products allow users to earn periodic interest, ensure a reliable income stream, or secure fixed rates to manage funding costs.

Currently live on the Ethereum testnet Goerli, Term Structure Labs enables users to participate in fixed-income borrowing and lending with ease. Borrowers receive tokens with fixed interest rates, while lenders obtain fixed-income tokens redeemable for principal plus interest upon maturity.

Moreover, the platform facilitates secondary market trading of fixed-income tokens through an orderbook system, enhancing liquidity and market efficiency.

To ensure the security of user assets, Term Structure Labs employs the zkTrue-up scaling solution, a customised ZK Rollup, which enables secure transactions without gas fees. Additionally, users have the option to initiate Forced Withdrawal in case of censorship or issues, ensuring the protection of their assets.

Founded by Jerry Li and Vincent Li in 2022, Term Structure Labs aims to democratise access to financial opportunities globally. By offering a comprehensive suite of fixed-income products tailored for both DeFi users and traditional finance institutions, the company seeks to foster a more inclusive and equitable financial ecosystem.

Through its innovative approach and strong investor backing, Term Structure Labs is poised to play a significant role in shaping the future of decentralised finance. By addressing the current gap in fixed-income offerings, the platform aims to propel DeFi towards greater sophistication and adoption, ultimately expanding its capacity to support a wide range of financial activities.