Term Labs, Inc., a blockchain R&D company, today announced it has raised a $2.5 million seed round led by Electric Capital with participation from Coinbase Ventures, Circle Ventures, Robot Ventures, MEXC Ventures, and with angel investment from DeFi founders from Aura, Balancer, Hashlow and Llama.
The funds raised will be used to develop Term Finance (termfinance.io), a decentralized lending protocol that utilizes a unique auction model to support scalable fixed-rate/fixed-term lending, a first in DeFi. Term Finance will bring transparent, low-cost, and crypto-native solutions for borrowers and lenders at an institutional scale when it launches on Ethereum.
Centralized crypto lenders providing fixed rate loans to institutions and other large crypto investors have mostly shut down and existing DeFi protocols have not created scalable models to serve these users. Term Labs is developing solutions to fill the market gap.
“We are thrilled to have such strong support from our partners,” said Dion Chu, CEO of Term Labs. “This funding allows us to develop a decentralized solution for the crypto lending market that saw over $80 billion in originations a quarter at its peak. Recent failures of centralized institutions in the crypto lending market highlights an urgent need for the market to move towards scalable on-chain solutions.”
Ken Deeter, partner at Electric Capital, added, “We believe Term Labs has the potential to bring a much-needed solution to the market with its decentralized lending protocol. Term’s unique auction model originates loans at scale without slippage, bid-offer spread or other hidden transaction costs seen in other variable and fixed rate lending protocols.”
About Term Labs
Term Labs is a blockchain research and development company founded by a team with deep traditional finance, big tech, and decentralized finance experience. Term Labs is dedicated to the development of robust, transparent, and scalable fixed-rate lending on blockchains.