Multicoin Capital Leads $1.15M Seed Round for DeFi Protocol Swivel Finance

The decentralized protocol says its offerings of fixed-rate lending and interest-rate derivatives will place it in a unique position in Defi.

By Tanzeel Akhtar

Dec 11, 2020 at 2:42 p.m. UTC

Updated Sep 14, 2021 at 10:41 a.m. UTC

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Tanzeel Akhtar

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Swivel Finance – a decentralized protocol for fixed-rate lending and interest-rate derivatives – has raised $1.15 million in a seed round led by investment firm Multicoin Capital.

According to a blog post on Thursday, other participants in the funding included Electric Capital, CMS Holdings, Divergence Ventures and DeFiance Capital.
Several angel investors also invested, including Huobi adviser Alex Pack, Aave CEO Stani Kulechov, and DeFi Alliance’s Imran Khan and Qiao Wang.
Swivel said it initially aims to facilitate "trustless" interest-rate swaps, allowing "cautious lenders to lock in a guaranteed yield." Investors will also be able to speculate by leveraging their rate exposure.
Formerly known as DeFiHedge, the firm said its interest rate offerings will place it in a "unique spot" in the decentralized finance market and could help grow the nascent DeFi industry.
Multicoin Capital said in its post on the funding that interest-rate derivatives are the "most liquid financial product on the planet," trading over $6.5 trillion per day. "Swivel unlocks this market and brings these concepts to crypto."
The seed investment will be used to ramp up development as the currently two-man team moves the project towards its version 1 mainnet launch.

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