DeFi protocol Thetanuts raises $17m

Thetanuts Finance, a DeFi protocol focused on structured crypto products, has closed a $17 million funding round led by Polychain Capital, Hyperchain Capital and Magnus Capital.

Thetanuts Finance has completed a $17M institutional funding round led by @Polychain, @HyperchainC & @Magnus_fund, supporting our ambition to create a thriving two-way altcoin option market and continue to push the boundaries for structured DeFi products.https://t.co/BH4aOUEckd pic.twitter.com/mmGBuCmBHu

— Thetanuts Finance (@ThetanutsFi) April 24, 2023

The project will use the funds to create a thriving two-way altcoin options market and expand the list of assets available for trading.

Currently the platform offers contracts on Ethereum (ETH), Wrapped Bitcoin (WBTC), Fantom (FTM), Avalanche (AVAX) and several other cryptocurrencies.

“New strategic investors support Thetanuts Finance’s ambition to push the boundaries of structured products and derivatives in the DeFi sector. With their backing, we aim to establish valuable partnerships with prominent blockchain projects and their founders, liquidity providers, funds, market makers and major exchanges,” said representatives of the protocol.

Thetanuts Finance is one of the first projects to implement the decentralized options vaults (DOV) model. However, the company noted that developing two-sided markets requires a significant expansion of asset diversity.

With the funding, the project will add a leverage feature, develop a new design, and allow users to purchase options around the clock without prior approval.

“Current DOV protocols are focused exclusively on the large-cap token market. This, coupled with the lack of decentralised options exchanges and liquidity sources, deprives users of the ability to trade such contracts,” stressed Thetanuts Finance.

The enhanced protocol will combine aspects of an automated market maker and the traditional money market. A beta version of the new platform will appear in the near future.

As reported in April, the Chicago Mercantile Exchange expanded its list of options on Bitcoin and Ethereum, adding contracts expiring on every weekday from Monday to Friday.