Swivel Finance is a decentralized protocol that facilitates fixed-rate lending and the trading of interest-rate derivatives through tokenized cash flows. By converting deposits into Principal Tokens and Yield Tokens, it allows users to lock in fixed yields or trade for immediate liquidity, addressing the need for predictable returns in volatile markets.
Funding
$3.5M raised to dateRaised to date based on public sources. This may differ from the amount the company actually raised and is based only on what is publicly available on the internet.
Founders
Product
Problem
In volatile cryptocurrency markets, participants often lack access to predictable returns and tools for managing interest rate risk. Existing decentralized finance (DeFi) protocols offer limited mechanisms for locking in fixed yields or trading future interest rate cash flows.
Solution
Swivel Finance is a decentralized protocol that enables fixed-rate lending and interest-rate derivatives trading through the tokenization of future cash flows. When users deposit tokens, Swivel splits them into Principal Tokens (PTs), representing the initial deposit, and Yield Tokens (YTs), representing the interest generated. Lenders can sell their YTs on Swivel's exchange to lock in a fixed premium and receive a fixed yield immediately, while other users can buy YTs to increase their exposure to future yield. This allows for both fixed-yield strategies and amplified yield opportunities, catering to different risk preferences and investment goals.
Target Audience
Swivel Finance targets DeFi users seeking fixed-income strategies, as well as traders and investors looking to speculate on interest rate movements in the cryptocurrency market.
Features
- Tokenization of deposits into Principal Tokens (PTs) and Yield Tokens (YTs) representing future cash flows
- Decentralized exchange for trading PTs and YTs, enabling fixed-rate lending and interest-rate speculation
- Ability for lenders to lock in fixed yields by selling YTs
- Opportunity for traders to gain amplified exposure to future yield by buying YTs
- Integration with yield-generating protocols to earn interest on deposited tokens