Vovo Finance recently announced that it raised around $2M as funds in the seed round that took place in January 2022 to build the decentralized finance structured products on Arbitrum. The investors are paying extra attention to see what new and innovative products Vovo will launch after the investment.
Following the launch of its first Arbitrum product, Principal Protected Product, the company is thrilled to have received so much support from various investors to continue its project.
Here is the list of some investors who contributed to the funds:
- Primitive Ventures
- Zee Prime Capital
- Pattern Research
- IOSG Ventures
- Kyber Network
- Matrix Port
Vovo also formed a team with members from various companies like Perpetual Protocol Genesis Trading’s Roshun Patel, Marco from zkSync, Pamir Gelebe from Libertus Capital, Forward Analytics, and many other professionals.
Vovo operates on the Ethereum layer 2 as a structured products protocol. It aims to design money legos for various platforms. It is a revolution in the decentralized finance market.
TradFi vs. DeFi
According to Vovo, TradFi can be complex in terms of its financial instruments. These instruments only open doors of profit and payoff for elite investors.
With DeFi, the investors get an equal opportunity to earn a profit. Vovo shows that decentralized structured protocols use smart contracts that work as brokers and give 100% transparency to investors. This breaks the discriminatory barriers to entry.
DeFi-patterned products will become a core component in the DeFi protocol due to this very reason. It will completely transform the finance industry and enable more opportunities for investors through fixed-income primitives and on-chain derivatives.
Vovo points out this plan is in its initial stage and they were able to overcome certain drawbacks including:
- Risk of centralization or liquidity shortage
- Restricted to BTC, ETH, and a few others
- Only a few types of structured products
Vovo overcame these cases with its protocol solution.
It tackled the first problem by analyzing the eruption in perpetual swap volumes to create on-chain automated market makers that find the protocol sources of liquidity directly.
To solve the second issue, Vovo is doing its best to give more options.
For the third problem, it raised the funds to build various structured products like market bias, risk levels, token deposits, lockup periods, and others.
Principal Protected Product (PPP)
Principal Protected Product or PPP is the first DeFi structured product, already existing in Traditional finance. PPP is one of the most traded products in TradFi. Vovo took the initiative to bring this product to DeFi users.
Vovo announced coming to Arbitrum on Medium: “Vovo PPP does direct yield farming into pools and collects rewards, which is more flexible and free from any locked period like normal fixed interest rate products.”
Vovo’s PPP gives more flexibility and transparency compared to other products, which is why it marks its success in the DeFi platform.
Thanks to the $2M funds, Vovo will develop more DeFi-structured products on Arbitrum that will completely revolutionize the DeFi platform and bring more investors to put in crypto investments without worrying about potential loss.
Vovo plans to launch a GMX’s GLP token-based and the yield-enhancement product soon.