0/ Excited to announce that Multicoin led the seed round for @SwivelFinance ! Our friends at @ElectricCapital @DeFianceCapital @divdotvc also participated, as did our enemies at @cmsholdings

Our blog here - https://multicoin.capital/2020/12/10/our-investment-in-swivel-finance/

Team blog here - https://swivel.substack.com/p/swivel-finance-closes-115m-seed-round

1/ Just as we spent a long time thinking about synthetic asset constructions in DeFi, we’ve been thinking about the fixed-rate DeFi space for 12 months. When we met @TraversaJulian, Swivel’s founder earlier this year, we instantly recognized the elegance of Swivel's construction

2/ Compound and Aave - variable rate borrow/lend markets - are 2 of the most important DeFi primitives

But there is a problem with variable rate borrow/lend markets: the variable rates! Lenders want to know what their rate of return will be, and borrowers want to project CoC

3/ Swivel is not a traditional interest rate swap protocol. Instead, it’s a new kind of interest rate swap protocol built on DeFi rails that guarantees a fixed rate of return for a lender, and allows the other side to speculate on interest rates with a lot of implied leverage

4/ Best of all, Swivel operates on top of variable rate markets like Compound and Aave, so it doesn’t have to bootstrap both sides of the market

It benefits from the liquidity and safety of existing platforms and also allows users to farm rewards while locking in a fixed rate

5/ While Swivel is starting with fixed-floating swaps, we expect them to add new interest-rate derivatives over time, such as floating-floating swaps, swaptions, floors, etc

IR derivatives are the most liquid products on the planet, and we're excited to see them come to DeFi

6/ If you're interested in building the future of DeFi, Swivel is hiring ! https://angel.co/company/defihedge/jobs

7/ Almost forgot, @ambergroup_io wrote a great thread about the opportunity for IR swaps in DeFi. Take a look - https://twitter.com/ambergroup_io/status/1329401450695249920