TL;DR: AlloyX, a decentralized finance protocol, has launched a liquid real-world asset (RWA) vault product following a successful $2 million pre-seed funding round. The vault combines tokenized private credit investment with highly liquid tokenized U.S. Treasury Bills, providing investors with access to liquidity, yield, and diversification in tokenized credit. The platform aims to enable protocols, DAOs, and institutional investors to build diversified investment strategies in real-world assets while generating attractive yields.
AlloyX Raises $2 Million in a Pre-seed Round led by Hack VC
Decentralized finance (DeFi) protocol AlloyX has secured $2 million in a pre-seed funding round led by Hack VC and backed by investors such as Circle Ventures, Digital Currency Group, and Stratos; the firm mentioned in a press release shared with AlexaBlockchain.
The funding will support the launch of AlloyX’s liquid real-world asset (RWA) vault product. AlloyX has integrated with nine credit protocols and is collaborating with Credix Finance and a tokenized U.S. Treasury Bills protocol to develop the industry’s first blended investment vault.
The RWA vault combines Credix’s tokenized private credit investment, which offers high yield and overcollateralization, with liquid tokenized U.S. T-bills.
The aim is to provide decentralized autonomous organizations (DAOs) and other investors with access to liquidity, yield, and diversification in tokenized credit.
Tokenized credit refers to digital tokens backed by real-world assets like loans or debt instruments.
The AlloyX platform enables investors and DeFi protocols to create strategies that blend tokenized U.S. T-bills with a deep pool of RWA, offering attractive yields.
Alexandre Liege, the CEO of AlloyX, explained the motivation behind their product development in response to the challenges faced by investors during the crypto market crash in 2022.
He noted that investors faced difficulties when attempting to exit positions from real-world asset (RWA) lending pools that had loans with several years remaining until maturity.
Recognizing the value of composability and flexibility inherent in decentralized finance (DeFi), Liege emphasized the importance of making these features available for RWA as well.
To address these challenges, AlloyX is actively building products that enable their community of users to invest and create diversified baskets of RWA. They aim to provide automatic reinvestment capabilities, similar to what Yearn Finance has accomplished for digital assets in the DeFi space.
By offering these functionalities, AlloyX aims to enhance the accessibility and flexibility of RWA investments, allowing investors to optimize their portfolios and navigate the ever-evolving financial landscape.
Chaim Finizola, Co-founder and Chief Growth Officer at Credix Finance, mentioned that AlloyX’s blended vault offers investors exposure to private credit while benefiting from the liquidity of U.S. T-bills.
AlloyX has already achieved $5 million in total value locked (TVL) and has generated average yields above 18% since its launch in 2021.
The blended vault is set to go live in early Q3 2023, and AlloyX plans to integrate with more DeFi protocols and introduce additional investment vaults later this year.