Electric Capital, Nascent Ventures invest in FLEX Coin & Notes.Finance DEX
February 18, 2021 (HK) — Electric Capital, Nascent Ventures, Bering Waters and several other private investors have invested $1.25m in FLEX Coin in anticipation of the launch of CoinFLEX’s Notes.finance DEX. This news comes after CoinFLEX’s repo market (the only tradable borrow/lend market) hit $2 billion in volume and paid out $200K in interest to flexUSD holders.
This private round comes after CoinFLEX raised 11M from Polychain Capital, Dragonfly, Divergence Digital Currency (DDC), Digital Currency Group, Mike Komaransky and Roger Ver.
Uncollateralized lending has always been a huge market in the traditional capital markets and is now becoming significant in the crypto markets, primarily through centralised lenders and also increasingly from defi platforms. On these cefi platforms, the retail or institutional lender is disintermediated by middlemen who take an interest margin between lenders and borrowers and lenders also do not have any transparency as to who these funds have been lent to and on what terms.
To that end CoinFLEX have created promissory Note Tokens (or Notes) where trading firms can borrow uncollateralized and lenders or token buyers have complete transparency as to who they are lending to and can receive the exact same rate that borrowers are paying with no disintermediation. In addition, CoinFLEX also juices returns for token buyers further by rebating 30% of the trading fees of these borrowers to all token holders.
For lenders that want a broad range of credit exposure and returns across all lenders, CoinFLEX has created noteUSD, a stablecoin that lends to CoinFLEX’s Note Token markets. noteUSD acts as an aggregator of Note Tokens and CoinFLEX’s interest bearing stablecoin flexUSD, earning yield from new trading firms seeking to borrow on CoinFLEX via Note Tokens. Efficient Frontier, Grapefruit Trading and Mountainville have already borrowed millions of dollars via Note Tokens.
Notes.Finance is a place to trade Note Tokens, flexUSD and noteUSD on a Decentralised Exchange powered by Curve.fi, the largest stablecoin DEX. Notes.Finance also introduces staking, where liquidity providers can earn FLEX rewards for facilitating liquidity in the DEX.
Curtis Spencer, a partner at Electric Capital, said “CoinFLEX has created a stablecoin platform that can create underlying interest for everyone while they are trading and investing in crypto. We think Notes.Finance will be an important piece in the DeFi landscape.”
noteUSD makes CoinFLEX an essential venue for every market maker, prop trader and institutional trading firm in crypto.
FLEX Coin is CoinFLEX’s exchange token, in which all fees are paid and 20% of profits are bought and burned. The growth of Notes.Finance will power FLEX Coin as the token underpinning all CoinFLEX activities.
FLEX Coin can be traded on CoinFLEX, other Exchanges and also on Uniswap.
About CoinFLEX
Founded in 2019 by Mark Lamb and Sudhu Arumugam, CoinFLEX (Coin Futures and Lending Exchange) is the world’s first interest-bearing stablecoin platform, developed to connect savers earning interest and leveraged derivatives traders.
