Struct Finance Joins the Avalanche Rush Incentives Program
With the approval of the Bitcoin ETF, institutional investors will now be able to tap and invest in Bitcoin.
While the price action post-approval differs from what most investors were hoping for, the importance of the ETF must not be understated.
This pivotal moment blurring the boundaries between TradFi and DeFi, finally greenlighting institutional investors.
What’s much harder sometimes is to allow the average Joe a chance to invest in sophisticated products, which are often only available for institutional investors. This is the challenge that we took on at Struct Finance when we launched on Avalanche: to create fixed-income products that would be accessible to the broader public.
After months of hard work finding our product-market fit, we’re grateful for all the accomplishments we are reaching.
In fact, as one of our first updates for 2024, we are incredibly excited to announce that we have been accepted into the Avalanche Rush program! As part of the program, Struct Finance will receive a total amount of incentives of up to $1m in AVAX.
This is the culmination of collaboration with the Avax Foundation and Struct Finance as a value-added player within the Avalanche ecosystem. As part of this journey, Struct Finance is currently ranking in the top 30 protocols on Avalanche.
The development of Struct tranched products empowers Avalanche users to access different yields on yield-bearing assets according to their risk preferences.
The role of Avalanche Rush is to be a liquidity mining incentive helping to solidify and elevate Avalanche-native DeFi protocols, a commitment undertaken by the Avalanche Foundation to support projects that are making Avax more accessible and decentralized.
Struct makes its suite of structured financial products, previously only accessible to institutional investors, available to the broader public on Avalanche.
This is reflected in the words of Luigi DeMeo from Ava Labs:
“Struct Finance joining Avalanche Rush is a huge step toward a more inclusive DeFi ecosystem on Avalanche […] With unique tranching mechanisms and the democratization of advanced financial products, Struct enhances liquidity and opens opportunities for a wider range of participants. This aligns with our vision for a decentralized and accessible financial future.”
Being selected as part of the Avalanche rush incentive underlines our ongoing commitment to deepen liquidity and strengthen the Avalanche DeFi ecosystem.
We also recently launched our Trader Joe’s autopool vaults, complementing our GMX-based products and deepening our product offer.
The success of these products has been overwhelming, with over $1.81m in TVL after two days and the second-biggest TVL gain on Avalanche.
How will Struct use these Incentives?
The Avalanche Rush Incentives will be deployed in our recently launched Auto-Pool integration with Trader Joe.
Struct Finance will use these incentives to provide a buffer for its users investing in the variable side of the autopool vaults, where users can deposit a single asset (AVAX or BTC.b).
The variable tranche is the most risk-prone tranche in our vaults, which boosts the yield of the underlying yield-bearing assets for users willing to take on a bigger risk in exchange for potentially higher returns — this can be considered leveraged yield.
According to the performance of the vault, this will either contribute to absorbing some of the Impermanent Loss (IL) or boost the APR of the pool.
We also recently unveiled our Struct Leaderboard, where users can find the top traders on the platform, which will benefit from unique rewards leading to our TGE.
Furthermore, we are also looking to open up our tranching mechanism for custom products, similar to Andy Warhol’s take on modern art, with the Struct Factory. The idea is to allow anyone to design interest-rate products based on tranches using USDC, BTC.b, AVAX or WETH, but that’s for another time.
Receiving these incentives is a great acknowledgment of where we have come so far and only one of the milestones we plan to accomplish in our upcoming roadmap.
What’s next?
The Avalanche Rush incentives will start streaming in the upcoming days.
Keep an eye on our vaults, and if you are a risk-prone investor, take advantage of the incentives and try the variable side of the vaults with a reduced risk of IL.
This program will help our most risk-prone investors test our variable tranches and get a gist of how structured financial products can transform yields within DeFi.
As part of our plan to tranche every possible yield-bearing asset, we are also committed to deepening our relationship and collaboration with Ava Labs, which we cannot appreciate enough for including Struct Finance in the Rush Incentives program and further developing our suite of products in tune with new rising primitives and changing market conditions, offering our users full coverage of the market according to their risk and reward preferences.
Follow us on our Twitter and Discord as we gear up to launch these and more products and our upcoming TGE.
You might not want to miss what’s coming.
For more information on our Auto-Pools, you can refer to Trader Joe’s article on Struct Finance receiving the Rush Incentives:
https://joecontent.substack.com/p/introducing-the-trader-joe-and-struct
