Friktion Closes 5.5M Raise to Build Portfolio Management on Solana

The protocol has received funding from top VCs such as Jump Crypto, DeFiance Capital, Sino Global Capital, and Delphi Digital.

Funding Follows Recent Mainnet Launch

Friktion Labs closed a funding round just three weeks after the mainnet launch of the protocol.

The capital raise that was closed on January 13 worth $5.5 million involved crypto-focused venture capital firms like Jump Crypto, DeFiance Capital, Pillar VC, Libertus Capital, Delphi Ventures, Sino Global Capital, Tribe Capital, Castle Island Ventures, Dialectic, Petrock Capital, and Solana Ventures. The protocol intends to deploy this fund into building “Circuits,” a liquidity and portfolio management system that is designed to drive long-term capital inflows and return generation for Decentralized Autonomous Organizations (DAOs).

“The DeFi market needs alternative ways to generate sustainable yields (beyond yield farming), and Friktion have found the correct market fit with its structured products offerings,” stated Arthur Cheong, Founder, and Investor at DeFiance Capital, in the official Medium blog elaborating about this round. “We believe that Friktion — by providing a complete asset and risk management solution to all DeFi stakeholders, including the currently underserved DAO Treasuries — will ultimately set the standard for Protocol Owned Liquidity and yield strategies within Solana.”

Source: Friktion Labs Medium

“We believe structured products will be an instrumental component in providing greater options for yields and hedges in the crypto market. Friktion has rapidly gained traction with a variety of participants, including DAO treasuries by providing an intuitive, easy-to-use interface and a wide range of Volts,” added Peter Johnson, Partner at Jump Capital. “We are excited for the Friktion team as they roll out additional products to serve a wide range of yield generation and hedging needs.”

The new portfolio management system from Friktion will enable the next generation of DAOs that are risk-aware, made for maximizing long-term value and managing capital, i.e., Current. The system will be powered by Volts, the protocol’s native return generation strategies and Inductors that are balancers and optimizers of the Current. Additionally, the protocol has onboarded a group of derivatives traders and market makers in Genesis Trading, Alameda Research, LedgerPrime, QCP Capital, CMS Holdings, Orthogonal Trading, and GSR.

What is Friktion Labs?

Friktion Labs is the development organization that is building the Frikton protocol, one of the largest options and structured product protocol across blockchain networks. The team behind the protocol consists of quantitative traders, researchers, and crypto engineers with prior experience in commodities, treasuries, volatility products, and digital assets. 

Find more about Friktion Labs here:

Website | Twitter | Documentation | Medium | Discord | 

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