Fresh funding will help accelerate product development, enabling Texture Finance to unlock powerful risk-managed yield farming opportunities for Solana users.
Solana-based DeFi platform Texture Finance has completed its latest fundraising round. Co-led by venture capital funds Sino Global and P2P Capital, the Texture team raised $5 million worth of USDC from a large group of investors, including Semantic Ventures, Wintermute, and Jane Street Capital, among others. Per the Texture Finance team, funds will advance product development to unlock new yield features for DeFi investors.
This latest funding comes at the heels of the Texture team preparing to launch a range of sophisticated investment products that will accelerate the growth and development of the Solana blockchain ecosystem. Texture Finance will soon introduce yield management and maximization strategies for the largest Solana-based yield sources, including multiple yield-generating and structural products such as risk and yield-based strategy pools alongside many optimization features.
As part of this endeavor, Texture will launch an inaugural strategy called the “SOL Power Yield Strategy” pool. This novel strategy pool pursues an algorithmic leveraged staking model to generate additional yield for a wide range of SOL staking positions. The upcoming Solana-based leveraged staking strategy means users can generate a risk-managed yield from the SOL tokens they already own while at the same time mitigating liquidation risks.
“We are excited to receive backing from such an amazing group of both institutional and angel investors, many of whom have been actively building in the space for years, so are very familiar with the challenges and intricacies of DeFi,” notes Texture Co-Founder Oleg Ravnushkin. “With this round, Texture is now well-funded and has a runway to build and scale over the next couple of years. Next stop – beta launch at Breakpoint 2022 and full launch soon after!”
Texture’s new strategy automates the end-to-end staking process by directly integrating Lido Finance – the Ethereum-based liquid staking solution, and Solend – the Solana-based lending and borrowing protocol. In addition to automation, this new strategy introduces algorithmic risk management via Texture Finance’s smart contracts. The risk management feature dynamically monitors and rebalances the main pool’s loan-to-value (LTV), minimizing liquidation risks in turn.
By looping SOL into Lido and Solend several times, Texture SOL Power Yield strategy maximizes SOL yield by adding leverage to the equation. As a first step, SOL is staked through the Lido liquid staking protocol to earn a yield from staking. The staked SOL is exchanged for stSOL tokens on Lido, representing the staked position in the staking pool. After receiving stSOL, users can deposit these tokens into Solend to earn lending yields. The next step is to borrow some SOL against the stSOL deposit in Solend. The yield earned by Solend is reinvested into the strategy, thus compounding the effect and inflating the yield return.
By employing Texture’s “SOL Power Yield Strategy,” users can repeat this process as often as they want, harvest all yield farming rewards, swap them for SOL, and redeposit them back into the SOL Power Yield Strategy, effectively compounding their returns through the use of leverage.
