Thetanuts Finance has raised a US$18 million investment in a seed round led by Three Arrows Capital, Deribit, QCP Capital, and Jump Crypto. The funding will supercharge the development of Thetanuts Finance’s structured products platform and user-friendly instruments in the crypto derivatives ecosystem.
Theta-Index and Theta-Wheel are two decentralized finance products that are the first of their kind.
Thetanuts levels the playing field for everyday users, making complicated structured products accessible to all.
Thetanuts is giving projects a way to place their native tokens in the options market with ease.
As the most advanced and inclusive crypto derivatives trading platform to date, Thetanuts Finance offers structured products that accept tokens from 11 chains as collateral. This gives users access to the most competitive risk-adjusted yield opportunities while creating new options markets for native tokens across multiple blockchains.
The US$18 million capital infusion will go toward Thetanuts Finance’s efforts to create innovative DeFi structured products. This will draw on the team’s expertise as hedge fund managers, financial analysts, and smart contract developers to introduce two proprietary additions to Thetanuts Finance’s suite of products.
The Theta-Index, an option basket giving everyday investors more well-rounded risk management, and Theta-Wheel, physically settled vaults that alternate between calls and puts, allowing investors to “buy low and sell high” while earning premiums, form a foundation for future options products offered by Thetanuts Finance. Together, they simplify otherwise hard-to-access options products for the everyday users.
Thetanuts Finance’s offerings are crucial components that have been missing from decentralized finance until now. “The automated nature of Theta-Index vaults significantly reduces the complexity of yield generation, is user-friendly, and leads to increased demand flow into OTC trading and CeFi. Thetanuts provides a nimble solution to allow teams to participate quickly and scale for their communities,” said John Jansen, CEO of Deribit, the world’s largest Bitcoin and Ethereum options exchange.
“We are seeing more institutional activity and maturation of core assets like Bitcoin and Ether. DeFi options have accelerated the development of the altcoin option market. One of Thetanuts’ flagship products is Theta-Index, the only product in the DeFi structured product space that makes generating yield as simple as a swap. With underlying options vaults backing the index, users can confidently deploy their tokens to generate income using a proven strategy,” said Darius Sit, CIO of QCP Capital.
With Theta-Index and Theta-Wheel, retail and institutional investors can earn significantly higher yield which is organically generated through options strategies. Thetanuts Finance’s offerings are much more sustainable in the long run because the yield is created by monetizing an asset’s high volatility through option premiums.
“We have seen a proliferation of wealth creation in the crypto space. Thetanuts will continue delivering durable wealth preservation strategies to generate sustainable on-chain income for millions of new crypto investors,” said Kyle Davies, co-founder and Chairman of Three Arrows Capital.
“As more capital flows in the Web3 space and DAO treasuries become larger, DeFi structured products offered by Thetanuts bring together sound treasury management tools that help the entire ecosystem maintain sustainability and continue building with rapid acceleration,” said Rahul Maganti, Vice President of Jump Crypto.
Thetanuts Finance is backed by recognizable names such as DeFi Capital, Raptor Group, Mirana Ventures, Crypto.com Capital, Tribe Capital, Goldentree, and Borderless. Moving forward, Thetanuts will engage DAOs and GameFi projects to develop yield generation opportunities.