Strips Finance

About Strips Finance

{"time":1704988962000,"blocks":[{"data":{"level":6,"text":"Highlights"},"type":"header"},{"data":{"items":["Strips Finance is the first interest rate derivatives exchange built on Arbitrum and BSC","Traders use Strips Finance to hedge and speculate on various interest rates","Users can boost yield farming returns, capture interest rate differentials and bet on funding rates"],"style":"unordered"},"type":"list"},{"data":{"level":6,"text":"Product"},"type":"header"},{"data":{"level":1,"text":"Bet on any type of interest rate with Strips Finance."},"type":"header"},{"type":"paragraph","data":{"text":"Built on the idea that interest rates are the metarule in finance, Strips allows users to trade interest rates and fixed-income products. Perpetual interest rate swaps, an innovative product developed by Strips, open up a host of new opportunities for yield farmers, speculators, and institutional arbitrageurs to easily hedge their risk and lock in alpha."}},{"type":"image","data":{"caption":null,"stretched":false,"url":"https://assets.polkastarter.com/9b17946bcx4qz29xv82ynydfq9xs","withBackground":false,"withBorder":false,"file":{"url":"https://assets.polkastarter.com/9b17946bcx4qz29xv82ynydfq9xs"}}},{"data":{"level":6,"text":"Problem"},"type":"header"},{"data":{"level":1,"text":"The fixed-income market is drastically underrepresented in DeFi."},"type":"header"},{"type":"paragraph","data":{"text":"Interest rate swaps are the largest traded OTC derivatives in traditional finance. The daily volume of OTC interest rate derivatives is estimated to be around $6.5trn per day. While interest rates are part of every aspect of DeFi, there are not many markets to trade them yet and the current approach of fixed-rate DeFi protocols is capital inefficient and lacks flexibility. As the DeFi market continues to grow and attract more capital, there is an unmet demand for interest rate markets."}},{"data":{"level":6,"text":"Solution"},"type":"header"},{"data":{"level":1,"text":"Derivatives instead of tokens."},"type":"header"},{"type":"paragraph","data":{"text":"By using derivatives rather than tokens as the tradable instrument, Strips Finance has solved a lot of the underlying problems plaguing current protocols. It tackles ease of use, capital efficiency and flexibility, and allows users to go long and short with x10 leverage."}},{"data":{"level":6,"text":"Business Model"},"type":"header"},{"data":{"level":1,"text":"Funds raised through the Polkastarter IDO will be used to bootstrap liquidity for the AMM and insurance pool."},"type":"header"},{"type":"paragraph","data":{"text":"This gives the team a two-year runway without the need for additional funding. The Strips Treasury will be staking in the AMM pools and Insurance Pool and earn trading fees for the Treasury.\r\nStrips Finance plans to put the long-term governance of the protocol in the hands of the community."}},{"data":{"level":6,"text":"Market"},"type":"header"},{"data":{"level":1,"text":"The main competitors include APWine, Pendle, and Notional."},"type":"header"},{"type":"paragraph","data":{"text":"The biggest issue for fixed-rate protocols is their capital inefficiency and low flexibility. Through the usage of derivatives instead of tokens as a tradable instrument, Strips Finance has solved a lot of these problems and provides users with an easy-to-use platform to access interest rate swaps."}},{"data":{"level":6,"text":"Investors"},"type":"header"},{"data":{"level":1,"text":"Strips raised $2.5 million in seed round from Tier 1 VCs and KOLs."},"type":"header"},{"type":"paragraph","data":{"text":"Lead investors include Mechanism Capital, Crypto.com, and Finlink Capital.\r\nOther notable investors include Defi Alliance, Defiance Capital, Magic Ventures, and Darren Lau.\r\n"}},{"type":"image","data":{"caption":null,"stretched":false,"url":"https://assets.polkastarter.com/9n8blgzctpqg0438e3btw8vkqry3","withBackground":false,"withBorder":false,"file":{"url":"https://assets.polkastarter.com/9n8blgzctpqg0438e3btw8vkqry3"}}},{"data":{"level":6,"text":"Team"},"type":"header"},{"data":{"level":1,"text":"Built by a first-class team of professional portfolio managers, derivatives traders, and blockchain developers"},"type":"header"},{"data":{"items":["Ming W. (CEO)","Cheng Z. (COO)","Kirill S. (CTO)","Andrew K. (Head of Marketing)"],"style":"unordered"},"type":"list"},{"data":{"level":6,"text":"Token Utility"},"type":"header"},{"data":{"level":1,"text":"The native cryptocurrency token is $STRP."},"type":"header"},{"type":"paragraph","data":{"text":"$STRP holders will have the ability to participate in the on-chain governance of the protocol. Furthermore, 20% of all trading fees will be distributed to staked $STRP holders. $STRP and $USDC will be used as collateral on the exchange, with the ability to add other assets subject to 75% approval from the community. In order to create new interest rate markets, users must deposit an initial amount of $STRP-$USDC LP tokens as collateral to bootstrap liquidity.\r\n"}},{"type":"image","data":{"caption":null,"stretched":false,"url":"https://assets.polkastarter.com/d20708abq723na4jy90uhhts92sz","withBackground":false,"withBorder":false,"file":{"url":"https://assets.polkastarter.com/d20708abq723na4jy90uhhts92sz"}}}],"version":"2.27.2"}