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Kyber Ventures Investing in DEFYCA
What is DEFYCA?
DEFYCA has developed a blockchain protocol that enables digital and crypto investors to invest in traditional debt securities and loan portfolios via tokenized assets.
On the DEFYCA protocol, tokenized assets are issued, securitized, and structured into liquid pools, which can be traded instantly and with no friction. Price discovery, liability matching, settlement, and payment flows are executed automatically through smart contracts. The result is a significant reduction in both investment costs and time for the issuer. It also offers investors the opportunity to earn tangible secured returns on stablecoins.
DEFYCA’s proprietary protocol has been specifically designed to remove counter-party risk in trades. It includes an independent risk oracle for continuous risk monitoring, instant Delivery versus Payment (DvP) settlement, specially secured MPC custodial wallets, an established crypto custodian, and treasury accounts provided directly at Circle, the stablecoin issuer. In total, enables all participants to invest and trade tangible fixed income on the blockchain while significantly reducing their exposure or risk.
"Our goal is to provide access for investors to invest frictionlessly in the private credit markets whilst providing debt funds with a fully-digital end-to-end infrastructure built on blockchain technology," said Pat Hourigan(Co-founder of DEFYCA)
The traditional debt market offers low-interest rates to investors but is often bogged down by manual processes and inequitable access to funding for originators. In contrast, the DeFi market can be volatile and lacks options for stablecoin investments that offer stable yields. DEFYCA aims to address these issues by using the Web3 Protocol to bridge the traditional debt market (TradeFi) with DeFi through tokenizing traditional bonds and loan portfolios. By utilizing blockchain technology and digitizing private debt, DEFYCA aims to improve transparency and reduce inefficiencies in the industry. The company plans to launch a primary market for risk-priced, onchain debt instruments targeted at investors and institutions and a secondary market for bond coupons and debt derivatives as a new liquid asset class. For originators, DEFYCA aims to provide access to instant, flexible lines of liquidity through professional risk scoring of off-chain and onchain data.
About Kyber Ventures
Kyber Ventures is the investment arm of Kyber Group, a Web3 Tech-focused group with popular products, including a leading KyberSwap DEX & an all-in-one non-custodial web3 wallet Krystal. Kyber Ventures, founded and run by an OG web3 builder, wanted to support entrepreneurs to build the next giants of the decentralized world.