Neutrl, a decentralized finance (DeFi) protocol that connects a myriad of blockchain networks, has closed a $5 million round of seed funding. Now the company is looking to expand their complex hedge fund trading strategy to a larger audience with a crypto token. Neutrl is targeting a massive $10 billion market in locked token agreements. From an investor’s standpoint, this move creates a tantalizing yield opportunity.
The funding round was co-led by digital asset private marketplace STIX and Boston-based venture firm Acccomplice. Other notable investors are Amber Group, SCB Limited, Figment Capital and Nascent.
Neutrl’s cutting-edge expertise is focused on purchasing locked altcoins on the market with greater than 30% off on non-public markets. To protect against downside risks, the protocol uses perpetual futures to hedge exposure. The protocol’s NUSD token is a synthetic dollar-pegged token. It is designed to produce a return by arbitraging discounted altcoin buys in OTC markets, along with delta-neutral hedging tactics.
Inspired by Ethena’s success, Neutrl wants to take advantage of altcoin market inefficiencies and opportunities. Neutrl’s NUSD token makes money by arbitraging discounted altcoin deals on OTC markets.
Meanwhile, from Neutrl’s home base in South Africa, co-founder Behrin Naidoo has big plans for the platform. Neutrl aspires to reach $2 billion in assets within two years. The company claims there is a $10 billion market for these locked up tokens.
Neutrl’s NUSD token is a synthetic dollar token based on OTC altcoin arbitrage and delta neutral hedging. The potential freedom that comes from their awesome yield opportunity makes them very attractive for investors.
