Beta Finance, a decentralized financial system that has created a one-click solution for lending, borrowing, and shorting any crypto asset, said on Friday that it has raised $5.75 million in private and public launchpad financing rounds. Sequoia Capital India led the private investment round. Also present were ParaFi Capital, DeFiance Capital, Spartan Group, GSR, Delphi Digital, and Multicoin Capital.
Allen Lee’s business is seeking to make it easier for customers to short a cryptocurrency in order to combat price volatility and provide them with another risk-hedging option. Existing DeFi protocols only allow users to borrow and short a small number of mature crypto assets, placing the overwhelming majority of these tokens out of reach.
Beta Finance, which is based on the Ethereum blockchain, claims to be addressing this inefficiency by developing the “first user-friendly protocol” with more options and capabilities. Its one-click solution allows traders without technical knowledge to maintain and update their short positions on any token, with all important token information provided right on the interface to help them make decisions. “Users may short many of the most volatile assets that are overlooked by traditional money markets, which helps balance volatility, hedge risk, and achieve better returns,” according to the company.
In an interview with TechCrunch, Lee remarked, “We consider short selling as a vital element of financial infrastructure that has been absent from the DeFi protocol.” “We feel that in order for DeFi to replace traditional finance, techniques like short selling must be developed.” In a statement, Pieter Kemps, principal at Sequoia India, said Beta Finance, whose token BETA trades on Binance, “has the potential to be a category-defining protocol.”
Within the first month of its platform’s existence, the business claims to have processed over 10,000 deposits, 1,000 borrowing, and 500 short positions for over 10,000 unique addresses. According to the startup, the protocol had a total value locked of over $195 million on average.
“Beta has already shown its capacity to support a varied variety of assets (including volatile ones) while being safe by becoming the first protocol to short an NFT when it authorized short-selling for the $NFD token barely a week after introducing the protocol.” “We’re certain that Beta will become an important player in the DeFi ecosystem in the future,” Kemps added. According to Lee, Beta Finance will use the new funds to expand its product offerings and recruit additional people.