Element Finance raised $4.4M in a seed round led by Andreessen Horowitz and Placeholder accompanied by SV Angel, A.Capital, Scalar Capital, and Robot Ventures. Angels included Joseph Lubin, Fernando Martinelli, Stani Kulechov, Mariano Conti, Robert Leshner and Tarun Chitra. The project aims to bring liquidity to the fixed-rate income and interest markets
Users will be able to purchase BTC, ETH, and USDC at a discount without being locked into a fixed-rate term, allowing easy swapping between the discounted asset and any other base asset at any time. The Element Protocol splits the base asset positions (ETH, BTC, USDC) into two tokens: the principal token, and the interest token. This allows users to sell their principal as a fixed-rate income position, “further leveraging or increasing exposure to interest without any liquidation risk,” the team said in a blog post.