PR Newswire
Term Labs, Inc., a blockchain R&D company, announced it has raised a $2.5 millionĀ seed round led by Electric Capital with participation from Coinbase Ventures, Circle Ventures, Robot Ventures, MEXC Ventures, and with angel investment from DeFi founders from Aura, Balancer, Hashlow and Llama.
The funds raised will be used to developĀ Term Finance, a decentralized lending protocol that utilizes a unique auction model to support scalable fixed-rate/fixed-term lending, a first in DeFi. Term Finance will bring transparent, low-cost, andĀ crypto-native solutions for borrowers and lenders at an institutional scale when it launches onĀ Ethereum.
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CentralizedĀ cryptoĀ lenders providing fixed rate loans to institutions and other largeĀ cryptoĀ investors have mostly shut down and existing DeFi protocols have not created scalable models to serve these users. Term Labs is developing solutions to fill the market gap.
“We are thrilled to have such strong support from our partners,” saidĀ Dion Chu, CEO of Term Labs. “This funding allows us to develop a decentralized solution for theĀ cryptoĀ lending market that saw overĀ $80 billionĀ in originations a quarter at its peak. Recent failures of centralized institutions in theĀ cryptoĀ lending market highlights an urgent need for the market to move towards scalable on-chain solutions.”
Ken Deeter, partner at Electric Capital, added, “We believe Term Labs has the potential to bring a much-needed solution to the market with its decentralized lending protocol. Term’s unique auction model originates loans at scale without slippage, bid-offer spread or other hidden transaction costs seen in other variable and fixed rate lending protocols.”
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The post Term Labs, Inc. Raises $2.5 Million in Seed Round to Build Safer Crypto Lending for Institutions appeared first on AiThority.
