Teahouse Finance, a decentralized asset management and strategy platform provider, today announced a total funding round of $5 million, including a $2 million financing round led by AppWorks, one of Southeast Asia’s premier VC companies and accelerators. Pantera Capital, NGC Ventures, Perpetual Protocol, and other investors also contributed to the round.
Teahouse Finance was founded in 2021 to address the tough concentrated liquidity provision dilemma. In order for DeFi to function, Uniswap pioneered the Automated Market Maker (AMM) concept in 2018 with the famous x*y=k formula, and boosted capital efficiency further in 2021 with the concentrated liquidity concept. However, even today, delivering liquidity on AMMs is difficult and frequently unprofitable.
Teahouse smart contracts use dynamic algorithms to handle customers’ funds on their behalf, similar to an investment portfolio, with the added bonus that users can enter/exit on a weekly basis.
Strategies use a variety of inputs, including market volatility, to dynamically alter liquidity pool ranges and hedge positions in order to maximize trading fees while limiting temporary loss.
In addition to its primary goal of democratizing DeFi through initiatives like Perpetual Protocol and Chainlink, Teahouse Finance plans to launch its enterprise-ready B2B offering, Teahouse Private Vaults, in Q2.
These specialized vaults, with dedicated smart contracts for each investor, are managed by Safe’s multi-sig wallets formerly Gnosis Safe, gated by NFTs, and protected by action filters that allow only specific transactions to take place e.g., strategy contracts can change fund allocation but not withdraw.
Teahouse Private Vaults are intended for both Web3 projects searching for a safe place to “HODL” or save their assets and traditional enterprises hoping to diversify into cryptocurrency.
Teahouse Finance’s technical team is a Binance Labs graduate and first-place winner of the TRON Global Accelerator competition. They reformed in 2021 to take on DeFi as a decentralized asset manager, DeFi platform, and tools developer, with a focus on resolving concentrated liquidity provision by optimizing LP ranges for maximum capital efficiency.
So far, the company has created seven DeFi approach vaults protected by transaction filters to assist individuals and organizations in investing securely and easily on Web3.
Teahouse approach vaults are constructed on top of “atomic” vaults using a novel, modular design and can optionally use specific smart contracts, NFT access gates, and be administered by Safe’s multi-sig wallets.
