May 4, 2021 – Hong Kong, Hong Kong
Formation Fi, a startup aiming to revolutionize DeFi portfolio construction, has completed $3.3 million in a strategic sale round.
The platform garnered participation by the founders of groundbreaking DeFi protocols such as Bancor, Synthetix and Polygon (formerly known as Matic), collectively managing over $6 billion in TVL, as well as venture capital funds including Kenetic, Kosmos, Spark Digital Capital, AU21, X21 Digital, Momentum 6, MarketAcross, GenBlock, GBV Capital, Shima Capital and Brilliance ventures.
A further 18 top-tier investors also contributed to the completely oversubscribed round, with capital earmarked for the development of Formation Fi’s risk parity protocol, the first chain-agnostic, algorithmic yield-management platform guided by the principles of the risk parity movement adopted by top hedge funds on Wall Street.
Formation Fi has dubbed the concept ‘smart farming 2.0,’ and envisions it as an advancement to DeFi’s current obsession with speculative yield chasing without much regard for risk.
With risk parity inspired smart yield farming 2.0, users get to tailor their level of exposure while receiving guidance from the protocol, which is engineered to reduce risks posed by both bull and bear cycles.
Uniquely, Formation Fi is seeking to create a founders’ club by attracting support from only the founders of top DeFi companies it wishes to work with long term. Formation Fi levels up yield-farming portfolio construction by facilitating better management thereof via a risk-adjusted portfolio of crosschain DeFi assets.
Formation Fi’s cofounder Krzysztof Gagacki said,
“We are proud to be building on the collective wisdom of some of DeFi’s first pioneers. With our founders’ club approach, we are focused on coming together to build and amplify this still experimental ecosystem and evangelize smart yield farming into the world of open finance.”
By optimizing the return-to-risk ratio for each unit of risk, and prioritizing secular diversification based on data-driven insights, Formation Fi promises to deliver superior returns over time. The platform also aims to simplify the DeFi world so that ordinary investors can participate and earn yield over the long haul.
The Formation Fi platform has been developed for a diverse user base. To get started, users need only deposit their preferred cryptocurrency and select a preferred investment style in the form of an index coin such as Alpha, Beta, Gamma or Parity. Each index coin can then be further deployed for additional yield at the holder’s discretion. Thereafter, the protocol will commence generating yield with users gaining access to the best-performing cross-chain yield strategies according to their stated risk tolerance.
Formation Fi has developed its own native token, which can be deployed in yield-farming strategies or added to a liquidity pool to boost yield. A triple-utility token, FORM, entitles holders to voting rights, a share of future net income generated by the protocol and grants exclusive access to Formation Fi’s Darkpool AMM pools.
About Formation Fi
Formation Fi is bringing cross-chain risk parity smart farming to the world of decentralized finance. An evolution of traditional yield farming, the startup reconfigures DeFi portfolio construction to help users better manage risk and earn greater returns. Learn more here.
Krzysztof Gagacki, Formation Fi cofounder