Teahouse Finance Raises $5 million to further defi wealth management

Teahouse Finance, a decentralized asset management and strategy platform provider, has announced a total raise of $5 million in funding, most recently with the close of a $2 million financing round led by AppWorks, one of the leading VC firms and accelerator in Southeast Asia. The raise also saw participation from Pantera Capital, NGC Ventures, Perpetual Protocol, and more.

Founded in 2021, Teahouse Finance was started to solve the difficult “concentrated liquidity provision” problem. In order for DeFi to function, Uniswap pioneered the Automated Market Maker (AMM) concept with the famous x*y=k formula in 2018, and further increased capital efficiency with the concentrated liquidity concept in 2021. However, even now, providing liquidity on AMMs remains a challenge, and often proves to be unprofitable.

Employing dynamic algorithms, Teahouse smart contracts manage users’ funds on their behalf, similar to an investment portfolio with the added benefit that users can enter/exit on a weekly basis. Strategies take various inputs including market volatility to dynamically adjust the liquidity pool ranges and hedge positions to maximize trading fees made while keeping impermanent loss contained.

 Not limited to liquidity provision, the company has launched a total of seven DeFi strategy vaults across multiple chains to help individuals and organizations to easily invest and become more profitable on Web3. Initially restricted to Teahouse NFT holders, in January of this year, the company released its first publicly available liquidity provision strategy, which currently boasts an average APR of 54.37%.

In addition to its main focus to democratize DeFi with projects such as Perpetual Protocol and Chainlink, in Q2, Teahouse Finance is targeting to launch its enterprise-ready B2B product, Teahouse Private Vaults. These specialized vaults with dedicated smart contracts for each investor, are operated by Safe’s multi-sig wallets (formerly Gnosis Safe), gated by NFTs, and protected by action filters that will only allow select transactions to take place (e.g. strategy contract can change allocation of funds but not withdraw). Teahouse Private Vaults are designed for Web3 projects seeking a safe place to “HODL” or store their funds as well as for traditional businesses looking to diversify into cryptocurrencies.

Fenix Hsu, co-founder and CEO, Teahouse: “With the recent collapse of trust in CEXes due to underhanded dealings by ex-industry-leaders like FTX, it is now more critical than ever to provide secure and transparent investment options that reside on-chain. We continue to focus on solving the hardest challenges (such as concentrated liquidity provision), educating the community, and building an awesome ecosystem with our partners.”

The new funding from AppWorks will be applied to developing new products and strategies as well as improving the security of the asset management platform at a time when people are turning to transparent on-chain solutions.

Jessica Liu, Partner at AppWorks: “The awareness of decentralization rises again as centralized services have caused several problems. Teahouse fills the market gap by providing asset management services in a fully decentralized way, and allowing enterprise clients to optimize returns on DeFi products by better utilizing the liquidity. As the Web3 industry continues to grow, AppWorks will continue to support founders within our ecosystem.”

Along with the launch of the Private Vaults, Teahouse has an exciting roadmap for 2023.

www.teahouse.finance