Key Takeaways
- Teahouse Finance raises $5M with $2M led by AppWorks.
- Teahouse Finance uses dynamic algorithms and smart contracts to manage users’ funds, optimizing trading fees while containing impermanent loss. Users can enter/exit weekly.
- Teahouse Finance launches 7 DeFi strategy vaults across multiple chains, plans to release Teahouse Private Vaults in Q2.
- Teahouse Finance to provide on-chain investment options after trust collapse in centralized exchanges. AppWorks funding to be used for product development and platform security.
Teahouse Finance, a decentralized asset management and strategy platform provider, has raised a total of $5 million in funding, with a $2 million financing round led by AppWorks, one of Southeast Asia’s leading VC firms and accelerators. Other participants in the round include Pantera Capital, NGC Ventures, and Perpetual Protocol.
Founded in 2021, Teahouse Finance was created to address the “concentrated liquidity provision” problem, which remains a challenge in providing liquidity on Automated Market Maker (AMMs) even with the increased capital efficiency of the concentrated liquidity concept.
To tackle this issue, Teahouse Finance uses dynamic algorithms and smart contracts to manage users’ funds on their behalf, allowing users to enter/exit on a weekly basis. Strategies take into account various inputs, including market volatility, to dynamically adjust the liquidity pool ranges and hedge positions, maximizing trading fees while containing impermanent loss.
Teahouse Finance has also launched seven DeFi strategy vaults across multiple chains to help individuals and organizations invest more profitably in Web3.
In Q2, the company is set to launch its enterprise-ready B2B product, Teahouse Private Vaults, which offers specialized vaults with dedicated smart contracts for each investor, operated by Safe’s multi-sig wallets, gated by NFTs, and protected by action filters that only allow select transactions to occur.
The new funding from AppWorks will be used to develop new products and strategies while improving the security of Teahouse Finance’s asset management platform at a time when transparent on-chain solutions are in high demand.
Fenix Hsu, Teahouse co-founder and CEO, said that the company’s focus is on solving the hardest challenges in the industry, educating the community, and building a robust ecosystem with partners.
Jessica Liu, Partner at AppWorks, noted that Teahouse Finance is filling a market gap by providing asset management services in a fully decentralized manner and allowing enterprise clients to optimize returns on DeFi products by better utilizing liquidity.
She added that AppWorks will continue to support founders within its ecosystem as the Web3 industry continues to expand.
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