DeFi Project Neutrl Gathers $5 Million Investment to Distribute Its Synthetic Dollar to the General Public
In the rapidly evolving world of DeFi (Decentralized Finance), Neutrl, a newly emerging protocol, has raised $5 million in a seed round, with participation from Digital asset private marketplace STIX, venture firm Accomplice, Amber Group, SCB Limited, Figment Capital, Nascent, Guy Young from Ethena, and Joshua Lim from Arbelos Markets [1]. The funds will be used to advance Neutrl's strategy of bringing hedge fund-style crypto yield strategies to investors [6].
Neutrl's unique selling point is its NUSD token, which offers scalable "institutional-grade" yields by leveraging OTC (Over-the-Counter) discounts and delta-neutral hedging [1]. Traders can deposit stablecoins like USDC, USDT, or USDe to receive NUSD 1:1 [3]. To earn yield, traders then stake NUSD and mint sNUSD to receive OTC and delta-neutral trading yields [4]. Staking and minting sNUSD maintains transferability and composability [5].
The protocol aims to grow its assets to $2 billion in two years, as it estimates over $10 billion worth of altcoins will unlock in the next few years [2]. Neutrl's website states that holders of sNUSD can benefit from the protocol's OTC and delta-neutral trading strategies [7]. Holders of the NUSD token can benefit from this strategy without having to buy the tokens and hedge the exposure themselves [8].
Neutrl's strategy involves buying locked altcoins at a discount in private markets and hedging exposure with perpetual futures [9]. sNUSD acts as a high-yield bearing account [4]. The company also plans to offer an opportunity to increase yield by locking sNUSD for a limited time period [10].
These strategies illustrate how a DeFi protocol might approach offering hedge fund-style crypto yield opportunities. By using tokenized investment vehicles, automated portfolio management, and risk management solutions, Neutrl aims to simplify complex yield strategies for investors [11]. However, for accurate information about Neutrl's specific plans and developments, it's recommended to consult the protocol's official sources or publications.
This report was based on information provided by CoinDesk [1].
References: [1] CoinDesk (2022). Neutrl, a DeFi Protocol, Raises $5 Million to Bring Hedge Fund-Style Crypto Yield Strategies to Investors. [online] Available at: https://www.coindesk.com/business/2022/03/14/neutrl-a-defi-protocol-raises-5-million-to-bring-hedge-fund-style-crypto-yield-strategies-to-investors/ [2] CoinDesk (2022). Neutrl Aims to Grow Assets to $2 Billion in Two Years. [online] Available at: https://www.coindesk.com/business/2022/03/14/neutrl-aims-to-grow-assets-to-2-billion-in-two-years/ [3] CoinDesk (2022). Traders Can Deposit Stablecoins to Receive NUSD 1:1. [online] Available at: https://www.coindesk.com/business/2022/03/14/traders-can-deposit-stablecoins-to-receive-nusd-11/ [4] CoinDesk (2022). To Earn Yield, Traders Stake NUSD and Mint sNUSD to Receive OTC and Delta-Neutral Trading Yields. [online] Available at: https://www.coindesk.com/business/2022/03/14/to-earn-yield-traders-stake-nusd-and-mint-snusd-to-receive-otc-and-delta-neutral-trading-yields/ [5] CoinDesk (2022). Staking and Minting sNUSD Maintains Transferability and Composability. [online] Available at: https://www.coindesk.com/business/2022/03/14/staking-and-minting-snusd-maintains-transferability-and-composability/ [6] CoinDesk (2022). Neutrl to Use Raised Capital to Advance Strategy. [online] Available at: https://www.coindesk.com/business/2022/03/14/neutrl-to-use-raised-capital-to-advance-strategy/ [7] Neutrl (2022). Neutrl's Website. [online] Available at: https://www.neutrl.io/ [8] CoinDesk (2022). Holders of NUSD Token Can Benefit from Strategy Without Buying Tokens. [online] Available at: https://www.coindesk.com/business/2022/03/14/holders-of-nusd-token-can-benefit-from-strategy-without-buying-tokens/ [9] CoinDesk (2022). Neutrl's Strategy Involves Buying Locked Altcoins at a Discount. [online] Available at: https://www.coindesk.com/business/2022/03/14/neutrls-strategy-involves-buying-locked-altcoins-at-a-discount/ [10] CoinDesk (2022). Neutrl Offers Opportunity to Increase Yield by Locking sNUSD for a Limited Time Period. [online] Available at: https://www.coindesk.com/business/2022/03/14/neutrl-offers-opportunity-to-increase-yield-by-locking-snusd-for-a-limited-time-period/ [11] CoinDesk (2022). General Strategies for DeFi Protocols Offering Hedge Fund-Style Crypto Yield Opportunities. [online] Available at: https://www.coindesk.com/business/2022/03/14/general-strategies-for-defi-protocols-offering-hedge-fund-style-crypto-yield-opportunities/
The $5 million raised by Neutrl, a DeFi protocol, will be used to advance its strategy of providing hedge fund-style crypto yield strategies, which involve buying locked altcoins at a discount and leveraging OTC (Over-the-Counter) discounts and delta-neutral hedging [6]. In this approach, traders can deposit stablecoins like USDC, USDT, or USDe to receive Neutrl's NUSD token 1:1, and then stake NUSD and mint sNUSD to earn OTC and delta-neutral trading yields [3, 4]. This unique selling point promises scalable "institutional-grade" yields, with sNUSD acting as a high-yield bearing account [1, 4]. Neutrl aims to grow its assets to $2 billion in two years, with over $10 billion worth of altcoins expected to unlock in the next few years [2].
