The company launches asset management platform that makes DeFi more accessible while ensuring security and flexibility
TAIPEI, Taiwan–(BUSINESS WIRE)–Teahouse Finance, a decentralized asset management and strategy platform provider, today announces a total raise of $5 million in funding, most recently with the close of a $2 million financing round led by AppWorks, one of the leading VC firms and accelerator in Southeast Asia. The raise also saw participation from Pantera Capital, NGC Ventures, Perpetual Protocol, and more.
Founded in 2021, Teahouse Finance was started to solve the difficult “concentrated liquidity provision” problem. In order for DeFi to function, Uniswap pioneered the Automated Market Maker (AMM) concept with the famous x*y=k formula in 2018, and further increased capital efficiency with the concentrated liquidity concept in 2021. However, even now, providing liquidity on AMMs remains a challenge, and often proves to be unprofitable.
Employing dynamic algorithms, Teahouse smart contracts manage users’ funds on their behalf, similar to an investment portfolio with the added benefit that users can enter/exit on a weekly basis. Strategies take various inputs including market volatility to dynamically adjust the liquidity pool ranges and hedge positions to maximize trading fees made while keeping impermanent loss contained. Not limited to liquidity provision, the company has launched a total of seven DeFi strategy vaults across multiple chains to help individuals and organizations to easily invest and become more profitable on Web3. Initially restricted to Teahouse NFT holders, in January of this year, the company released its first publicly available liquidity provision strategy, which currently boasts an average APR of 54.37%.
In addition to its main focus to democratize DeFi with projects such as Perpetual Protocol and Chainlink, in Q2, Teahouse Finance is targeting to launch its enterprise-ready B2B product, Teahouse Private Vaults. These specialized vaults with dedicated smart contracts for each investor, are operated by Safe’s multi-sig wallets (formerly Gnosis Safe), gated by NFTs, and protected by action filters that will only allow select transactions to take place (e.g. strategy contract can change allocation of funds but not withdraw). Teahouse Private Vaults are designed for Web3 projects seeking a safe place to “HODL” or store their funds as well as for traditional businesses looking to diversify into cryptocurrencies.
“With the recent collapse of trust in CEXes due to underhanded dealings by ex-industry-leaders like FTX, it is now more critical than ever to provide secure and transparent investment options that reside on-chain,” said Fenix Hsu, Teahouse co-founder and CEO. “We continue to focus on solving the hardest challenges (such as concentrated liquidity provision), educating the community, and building an awesome ecosystem with our partners.”
The new funding from AppWorks will be applied to developing new products and strategies as well as improving the security of the asset management platform at a time when people are turning to transparent on-chain solutions.
“The awareness of decentralization rises again as centralized services have caused several problems,” said Jessica Liu, Partner at AppWorks. “Teahouse fills the market gap by providing asset management services in a fully decentralized way, and allowing enterprise clients to optimize returns on DeFi products by better utilizing the liquidity. As the Web3 industry continues to grow, AppWorks will continue to support founders within our ecosystem.”
Along with the launch of the Private Vaults, Teahouse has an exciting roadmap for 2023. They also have a number of job openings available. To learn more about the company, please visit https://teahouse.finance/. For a Chinese version of this press release, go to https://medium.com/@teahouse.finance.
About Teahouse Finance
The technical team behind Teahouse Finance is a graduate of Binance Labs and a first place winner of the TRON Global Accelerator competition. In 2021, they reunited to take on DeFi as a decentralized asset manager, DeFi platform and tools developer, with a focus on solving “concentrated liquidity provision” by optimizing LP ranges for maximum capital efficiency. Thus far, the company has launched a total of seven DeFi strategy vaults protected by transaction filters to help individuals and organizations to securely and easily invest on Web3. With an innovative, modular design, Teahouse strategy vaults are built on top of “atomic” vaults and can optionally utilize dedicated smart contracts, NFT access gates, and be operated by Safe’s multi-sig wallets. Teahouse Finance has recently been named a “Best New Decentralized Finance Application of the Year” by PANews. For more information, go to: https://teahouse.finance/.
About AppWorks
Based in Taiwan, founded in 2009, AppWorks is a leading startup community and venture capital firm built by founders, for founders. AppWorks Accelerator, the renowned 6-month free accelerator program, admits 30 – 40 AI, Blockchain, and Southeast Asia startups per batch from across the region and boasts 472 active startups and 1,522 founders in its alumni network.
As a VC, AppWorks manages three venture capital funds totaling US$ 212 million, typically investing in seed to Series C companies. We fund 20 deals a year, now with more than 90 names in our portfolio, while having produced 5 IPOs, 4 IEOs, 1 hectocorn, 2 decacorns, and 5 unicorns. For more information, go to: https://appworks.tw/
Contacts
Tina Wei-Ting Shyuan
COO, Teahouse Finance
tina@teahouse.finance
