Texture Finance, a Solana-powered decentralized finance protocol, announced on Nov. 2 it successfully raised $5 million in a funding led by P2P Capital, an active DeFi and staking investment firm, and Sino Global, a venture capital firm.
The funding round also saw the participation of other investors including Wintermute, Semantic Ventures, and Jane Street Capital, among others.
The capital will go toward accelerating product development and supporting the DeFi growth. The Solana-based protocol aims to apply a specific yield management strategy to maximize profitability for DeFi investors, also known as Texture’s SOL Power Yield Strategy.
Texture Makes DeFi Better
Texture’s primary mission is to promote easy access to sustainable DeFi yields through one-click leveraged SOL staking while managing LTV and auto-compounding token rewards. The ultimate goal is to attract new users into crypto and support Solana’s growth. Developments of yield generation and structuring solutions are in the process
These solutions will include a variety of strategy pools that are grouped by risk and type of yield along with corresponding optimization features. The implementation of Texture’s SOL Power Yield Strategy pool plays a significant role.
The pool makes use of an algorithmic leveraged staking strategy in order to produce greater value from users’ staking holdings in SOL.
Additionally, by employing the Solana-based leveraged staking method, the protocol encourages users to join and generate income on their SOL with zero to minimal concerns about liquidation risk.
In addition, Texture also integrates Lido, a liquid staking solution in order to achieve the strategy’s automation.
The protocol partners with Solend’s main pool and Solana-based DEX Orca to accelerate real yield and auto-compounding token rewards.
In addition to automating the technique, the smart contracts offered by Texture implement algorithmic risk management by constantly evaluating and adjusting the LTV of the pool. This helps to reduce the likelihood of the pool being liquidated.
Texture Finance co-founder Oleg Ravnushkin expressed his delight, adding that the group’s extensive and skilled industry expertise will help Texture, “build and scale over the next couple of years.”
Ravnushkin also indicated that the product’s private beta would launch at Breakpoint 2022 in November, followed by a complete launch later.
Konstantin Lomashuk, Founder of P2P Capital noted that the firm, “is excited to support the Texture team on a quest to provide better yield products to the Solana community.” P2P’s founder also affirmed the possibility of extended partnership in the future.
At Home on Solana
Texture Finance is a Solana native protocol designed to make leverage staking more accessible and manageable for both experts and beginners. The protocol is designed to help investors optimize and maximize profits while managing algorithmic risk through the use of sophisticated smart contracts.
Despite the fact that these applications are still in their infancy stages, the first category of decentralized apps to have numerous market-ready solutions is decentralized finance.
The most difficult challenge for loops in DeFi applications is establishing a presence in these areas.
Thomas Tang, VP of Investment from Sino Global Capital said, “We’re delighted to back Texture, developing algorithmic strategies that deploy capital across multiple protocols to optimize yield for users. We’re excited for their first product – leveraged SOL staking with algorithmic risk management and rebalancing.”
Identifying a trade partner can be a tough and time-consuming procedure when there are only a few thousand active DeFi members in the early days. Because they were based on peer-to-peer models, early DeFi applications struggled to grow rapidly in the market.
However, in most cases, maturity has surmounted the initial obstacles. The DeFi market is rapidly expanding as a result of significant advancements, and Texture Finance has significant growth potential and great features.
