We, Advanced Blockchain, continue to expand our DeFi portfolio holdings by becoming an early investor in MYSO Finance. MYSO Finance has recently announced the completion of their $2.4M seed round in which Advanced Blockchain strategically participated to back their development IKARUS, a zero-liquidation loan protocol.
Advanced Blockchain believes MYSO will have a valuable impact across DeFi
The founding and management team of MYSO finances comes from a strong traditional finance and consulting background, this coupled with several other important factors, led to the decision to participate in the early funding round of MYSO Finance. At Advanced Blockchain, we believe that their initial product, the IKARUS protocol, is setting out to solve one of the most pressing problems in decentralized borrowing and lending, namely liquidation risk. Zero liquidation loans enable DeFi users to borrow against their crypto without having to worry about liquidation risk. Thus, MYSO’s solution brings several key benefits to borrowers, including, no liquidation risk, no liquidation penalty fees, no need to monitor their LTV factor or deal with the changes in borrowing costs. It is also important to note that the oracle independent design allows positions to be closed automatically by user incentive and choice. This design is unique and makes the solution immune to oracle manipulation attacks that have been a prevalent hack in DeFi.
Here is a recent example of an oracle dependent hack that was avoided but could be nullified all together when the solution is oracle independent:
Richard Malone who headed up the investment at Advanced Blockchain commented, “Lending is by far the most adopted use case for DeFi. However, anyone that has used DeFi lending protocols knows the risk associated with liquidations and the resulting complications involved. We think Aetienne and Dominic have built an elegant solution to nullify liquidation risks through their Zero Liquidation Loan product and are excited to support them in their quest to solve the biggest pain point for decentralized borrowing and lending.”
In addition to the benefits listed above, the IKARUS protocol provides liquidity providers (LPs) a unique opportunity to earn yield based on a passive options selling strategy. These benefits are the result of the MYSO approach, as the liquidation risk is transferred to the LPs in exchange for the yield that is being earned, thus creating a permissionless lending and borrowing environment. Their borrower-centric model was thus very intriguing for AB Capital team as it has the potential to open the door for many new opportunities and use cases for derivatives in DeFi, which represents an enormous market opportunity. This includes the possibility of MYSO to be the core of several new financial tools that can be built on top of it such as insurance and hedging products. Thus, the potential of this investment coupled with the strong founder and management team come from strong traditional finance and consulting backgrounds
About MYSO Finance
MYSO Finance was founded in early 2022, after being awarded as one of the winners at the ETHOnline hackathon in October 2021. MYSO Finance is an abbreviation for a Million Yield Structuring Opportunities and aims to combine concepts from the world of DeFi with TradFi to build game-changing financial products, starting with the IKARUS protocol as its first product.
About Advanced Blockchain:
Advanced Blockchain AG is a venture builder and investor in the blockchain industry with an extensive team of analysts, developers, programmers, economists, mathematicians, and marketers dedicated to developing the future of Web 3.0. Group-wide, the team consists of more than 200 members, covering various disciplines enabling the firm to innovate in different ecosystems of the industry.
For more information about Advanced Blockchain and our various projects and investments, please visit: https://www.advancedblockchain.com/.