Pantera Joins $3.7M Round for Solana Lending Protocol Hedge

Race Capital led the round for the interest-free lending protocol ahead of its public launch.

AccessTimeIconApr 19, 2022 at 3:01 p.m. UTC
Updated May 11, 2023 at 5:33 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Interest-free lending protocol Hedge said Tuesday it raised $3.7 million in a seed funding round led by Race Capital with participation from Pantera Capital and other investors.

The project is planning for a public launch during the second quarter of this year as decentralized finance (DeFi) on Solana eclipses $6.7 billion in total value locked (TVL).

  • DeFi Market Rebounds to $50B as Speculators Hunt for Yield
    01:11
    DeFi Market Rebounds to $50B as Speculators Hunt for Yield
  • How Spool Is Aiming to Help Institutions Enter DeFi
    11:05
    How Spool Is Aiming to Help Institutions Enter DeFi
  • Curve Finance’s Stablecoin Maintains Peg as Others Struggle: Kaiko
    01:27
    Curve Finance’s Stablecoin Maintains Peg as Others Struggle: Kaiko
  • DeFi's Total Value Locked Slumps to Lowest Level Since February 2021: Data
    03:20
    DeFi's Total Value Locked Slumps to Lowest Level Since February 2021: Data
  • “Currently, there is a huge opportunity in the Solana ecosystem because 80% of Solana is not locked in DeFi,” Hedge co-founder and CEO Sebastian Grubb said in a statement. “With Hedge we’re really trying to upgrade the whole Solana DeFi ecosystem. We want to help users unlock more liquidity and better leverage their assets without having to exit their positions.”

    Hedge offers interest-free loans that provide users with instant liquidity without creating a taxable event with ongoing interest payments. Users can deposit and borrow against their Solana (SOL) tokens, and Hedge provides the loans in USH, its dollar-pegged stablecoin.

    On the collateral front, the loans can have up to 90% loan-to-value (LTV), a ratio between the loan amount and the value of the collateral.

    New York-based Hedge was founded by former Google project manager Grubb and Chris Coudron, whose startup was acquired by Salesforce and then folded into Work.com.

    Other participants in the funding round included Pantera Capital, DCM, Solana Ventures and Shima Capital, among others. The new funding will help Hedge expand its team and make its liquidity vaults available to the general public this quarter.

    “Liquidity is a common pain point for Web 3 users, but Hedge is simplifying access to liquidity, lowering barriers for both new and veteran users,” said Pantera partner Paul Veradittakit in a statement.

    UPDATE (April 19, 15:53 UTC): Corrects Chris Coudron’s work history.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Brandy Betz

    Brandy covered crypto-related venture capital deals for CoinDesk.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


    Read more about