- Summary:
- AlloyX is using tokenised credit to increase access to funding pools for DAOs in the DeFi ecosystem. The new vault will be ready in Q3.
AlloyX, the DeFi protocol, has raised $2 million in pre-seed funding, to enable it set up a real-world asset vault. Hack VC spearheaded the pre-seed fundraising round. Circle Ventures, Digital Currency Group, Stratos, Lecca Ventures, MH Ventures, very early Ventures, Archblock, dao5, and Credix Finance all contributed to the round as well.
Tokenised credit to power DAOs and DeFi
The AlloyX Protocol enables DAOs and large investors to develop hedging strategies that encompass a wide range of physical assets. Tokenized credit pools make it easier for investors to earn attractive returns while also providing liquidity to loans on the blockchain.
The AlloyX vault holds both tokenized U.S. Treasury notes issued by a smart contract and overcollateralized tokenized credit issued by Credix Finance. Tokenized credit is the practise of issuing digital tokens secured by traditional credit instruments like loans. Notably, tokenized credit investments are often less liquid than crypto loans or liquidity pools due to their initial lockup periods.
By providing an alternative to the current crypto-based loan and liquidity provision alternatives, the vault hopes to attract protocols, DAOs, and institutional investors in the DeFi ecosystem.
AlloyX says that its first DeFi vault will allow users to develop customised strategies that combine tokenized U.S. Treasury bills with a variety of real-world assets to strike an appropriate balance between yield and risk appetite. In early Q3, AlloyX will launch its first real-world assets vault, with further investment vaults and integration with various DeFi protocols planned for later in the year.
Crypto lenders are able to manage their RWA investments in accordance with their return, risk, and liquidity choices on the AloyX platform. The platform integrates and aggregates investments from top credit protocols including Credix Finance, Goldfinch, and Centrifuge. With the new funds, AloyX has connected with nine credit protocols, including a tokenized US Treasury Bill protocol and a partnership with Credix Finance to create the first hybrid investment vault in the industry.