🍀Paving way for Institutional Capital in the Digital Asset Space🍀 Alphagrowth locks on private liquidity deals. Over the past 12 months, alphagrowth spearheaded growth operations for household DeFi names - Compound Finance, Uniswap & Rocketpool. Within this 12 months timespan, we secured $750M in capital and $6M in non-dilutive investments for our partner protocols. Armed with experience, insights and intuitions, we are doubling down on the institutional aspect of the digital asset space.

Over years, we battle tested and honed our growth strategies with big names in the industry. Starting with Growth operations for Near blockchain, we expanded them to other blockchains like Kava and Aurora. Recently we have also spearheaded growth for Ronin and Saga blockchains, both of the blockchains have nascent DeFi landscape that we are working to grow. This also includes a spectacular $170M in capital raise on Arbitrum blockchain within just 3 months.

Why the Shift? TVL is the most visible metric to gauge the success of any blockchain or a protocol. It is the measure of economic activity on the blockchain protocol, akin to GDP of a nation state. To attract TVL, protocol teams are dishing out added incentives, running special LP programs. This sometimes comes in the form of airdrops, points programs. But also in the form of deals with high APRs and guaranteed yields over periods of time. So for example, with Compound on Arbitrum - we secured a non-dilutive funding of 1.9M ARB from the Arbitrum Ecosystem. The structured deals that we set up ended up bringing $170M of TVL in 3 months. Similar deals around different ecosystems and protocols helped us understand the importance of institutional capital in the DeFi space. While retail capital is more transitionary and mobile, institutional capital can be sticky with sustainable yield strategies. With our established network on both the demand and supply sides of the equation, it made sense to facilitate the onboarding of the institutional capital on the DeFi ecosystems.

Whats the Deal? With our deep network in the web3 ecosystem, alphagrowth continuously gets dealflow for opportunities on Capital Deployment. We analyze these deals and structure them to onboard capital of size - without impacting the Yields which is usually the case in DeFi. We structure deals with protocols - usually with guaranteed Yield and circulate it within a network of Hedge funds, family offices, HNWIs and auxiliary funds. The interested capital providers are connected with the protocol team, terms are discussed and finalized. Our mandates are simple, help protocols get 0 to $100M and then $100M and beyond.

Current Challenges Whether DeFi native funds or TradFi institutions, our conversations revealed a consistent pattern of challenges that plague onboarding of capital to DeFi. Three of them stand out: 🔸Smart Contract Risks : every crypto cycle is rocked by some protocol facing an exploit in its code, resulting in loss of user funds. This severely erodes confidence of funds that primarily aim to balance risks and rewards. 🔹Variable Risks - unlike rates in traditional finance where changes are few and far between in basis points, the Digital asset market is highly volatile - rates on even the biggest protocols can change by a couple percentage points on a sunny day. Making long term investments risky. 🔸Regulatory Risks - regulatory uncertainty in major economies put legal uncertainty on any venture in the Digital asset territory.

Whats Next? We have started conversations with various different institutional capital organizations focusing on all potential avenues of involvement in DeFi. We’ve selected the first cohort of blockchain protocols to be introduced to institutional investors. Conversations are in various stages for capital deployment. Token2049 in Singapore this year saw unprecedented levels of interest from TradFi. As more and more capital pours into web3 and DeFi, we prepare our partners to be best placed to capitalise on the opportunity. Explore more expert insights and in-depth analysis from our team here 👇