Beta Finance, which offers one-click option to short sell crypto assets, raises Sequoia Capital India and others
Beta Finance, a decentralized financial protocol that has developed a one-click solution for lending, borrowing and short selling any crypto asset, said on Friday it had raised $ 5.75 million during its rounds of trading. private and public investment.
The private investment cycle was led by Sequoia Capital India. ParaFi Capital, DeFiance Capital, Spartan Group, GSR, Delphi Digital and Multicoin Capital also participated.
The startup, founded by Allen Lee, is trying to make it easier for users to sell a crypto coin to combat price volatility and also give them another way to hedge their risk.
Existing DeFi protocols only support borrowing and shorting a very limited selection of mature crypto assets, leaving the vast majority of these tokens inaccessible to users.
Beta funding, which is built on top of the Etherium blockchain, says it is bridging this inefficiency by creating what it calls the first user-friendly protocol that offers wider choice and functionality.
Its one-click solution allows traders without technical know-how to manage and update their short positions on any token with all relevant token information directly available on the interface to guide their decision. “Users can short sell many of the more volatile assets overlooked by existing money markets, helping to offset volatility, hedge risk and earn healthier returns,” the startup said.
“We view short selling as a critical piece of the financial infrastructure that the DeFi protocol lacked,” Lee said in an interview with TechCrunch. “For DeFi to replace traditional finance, we believe it is necessary to create tools such as short selling.”
Beta Finance, whose BETA coin trades on Binance, “has the potential to be a category definition protocol,” Pieter Kemps, director of Sequoia India, said in a statement.
The startup claims that in the first month of launching its platform, it had processed more than 10,000 deposits, 1,000 loans and 500 short positions for more than 10,000 unique addresses. The protocol had a locked-in average total value of more than $ 195 million, the startup said.
“In addition to being the pioneer of one-click shorting, Beta has already proven its ability to accommodate a diverse range of assets (including volatile assets) while remaining secure by becoming the very first short-circuit protocol. circuit an NFT when it allowed short selling. for the $ NFD token, just a week after the protocol was launched. We are very optimistic that Beta will become a key player for the DeFi ecosystem in the future, ”said Kemps.
Beta FINance will deploy the new capital to expand its product offering and hire more talent, Lee said.