Waterfall DeFi
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Waterfall DeFi

Investment Team Comments #1: GBV

Welcome to our first in the Investment Team Comments series, where we will have our investors sharing their thoughts on backing Waterfall DeFi! This time we are excited to have GBV, our lead seed investor, joining us to give us some of their insights.

So, how can GBV help Waterfall DeFi succeed?

GBV has been an active player in the DeFi space since the early days (Compound and YFI), and we continue to be active players across multiple blockchains.

Our founding team has a background in structured products and specifically CDOs (Collateralized Debt Obligations), which is effectively what the Waterfall DeFi team is building! So this is a project that GBV feels passionately about in terms of the idea of implementing tranche products into DeFi along with its technical design too.

Finally, GBV has a broad range of DeFi projects in its portfolio and will aid the Waterfall team at connecting and generating partnerships across the space.

Why did you invest in Waterfall DeFi?

We have seen a number of projects that have attempted to produce a ‘tranching product’. Some of them have done very well. However we believe none of them unlock the true value of tranching, which is correlation.

Waterfall works on pools of yield-generating tokens, not just a single one. Hence you are looking at the probability that all the projects in the pool experiencing losses simultaneously. Then you can take a view on whether “project risk” is systemic or idiosyncratic.

We have known some of the founders of Waterfall DeFi for a long time, and we believe in their vision and skill sets. So this is also an investment in the team.

What do you think are the advantages of Waterfall DeFi over competitors?

In some ways, there is no competitor currently. Other ‘similar’ projects really focus on a single asset (which makes it a simple leverage play). Waterfall deals with pools of different assets. It is unlocking a new asset class.

Waterfall allows users to participate in some of the ‘riskier’ yield farming protocols out there, while being able to select your risk tolerance (and thus different yields). There is no other product out there that does similar.

In your opinion, what is the most interesting feature of Waterfall DeFi?

The ability to introduce correlation as an asset class into the crypto space. One now has the option to invest across a pool of higher yielding project farms, and still control the amount of risk you are taking. It’s a unique way of getting exposure in DeFi.

What is your advice to builders in the space looking to attract more users in the DeFi ecosystem?

It depends on your product! However we will say, one of the unique aspects of the DeFi space is composability. This means it’s a lot easier to partner with different projects and create ‘user experiences’ together.

The most successful projects connect well with the other projects in their ecosystem.

TIL! We hope the Investor Team Comments series will make our #WTFGang supporters more familiar with our investors, after all we are a big community in the DeFi and Web3 space! More Investor Team Comments are coming up, make sure you have followed our Medium & Twitter, and joined our Telegram & Discord community!

About GBV

GBV Capital is dedicated to the investment, development, and the creation of Blockchain projects that shape our future. We aspire to build projects that affect positive change and advance solutions that matter. Follow us at https://twitter.com/gbvofficial!

About Waterfall DeFi

Waterfall DeFi is the first true risk diversification yield aggregating DeFi protocol that enables users to carefully optimize their yield farming strategy. Users can invest in different “tranches” of a yield product portfolio that represents different combinations of risk and reward. Compared with existing yield farming strategies, Waterfall provides the DeFi space with new options to secure fixed and predictable yields or leverage their capital for higher potential gains.

Official Website: https://waterfalldefi.org

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Waterfall DeFi

Waterfall DeFi

Bringing true risk tranching to Decentralized Finance