MoHash raises $6M in seed funding to bring steady, sustainable yields to DeFi – TechCrunch

The the recent collapse of UST demonstrated once again that many of the so-called stablecoins in today’s web3 world are tied to high-risk and often unsustainable assets. As decentralized finance tries to expand its reach, it seems in dire need of alternative sources of income.

During this past DeFi summer, yields on USDC on lending protocols ranged from 4-6%, said Md Halim, founder of DeFi startup. ZeFi. At one point, yields rose as high as 9%.

“As the value of Bitcoin and Ethereum increased, the demand for loans to them skyrocketed, driving yields higher. But now as we grapple with fear and uncertainty in the market, a lot of big funds/whales have lost money,” he said. “This has had a stratifying effect on the players who lend it to them. Lenders, in turn, are liquidating their collateral to recover loans, leading to further declines in the price of BTC/ETH and other assets. That is reflected in the contraction of TVL in DeFi procotols in terms of the absolute unit of the locked asset. “

The message is clear: “If you are a crypto user, you also need to have access to more secure assets,” said Arun Devarajan, founder and chief executive officer of MoHash.

Devarajan’s startup, MoHash, is working to address this gap by harnessing the world’s real yields. The startup is building a decentralized finance protocol that will tap global capital and liquidity for alternative assets in fast-growing economies.

“We are allowing access to fast-growing economies and its growth makes sense… it is not bound by fluctuations in the crypto market. Cryptocurrency has a great trading case, but it changes with the wind. There is so much more you can do with the same infrastructure and we are trying to expand what it can do by bringing in regulated, high-yield assets,” he said.

MoHash has been working on solving this challenge for a year and has brought together a number of experienced financial and technology individuals from companies such as Goldman Sachs, Amazon, Oliver Wyman, India Stack and Samsung.

The startup aims to start executing deals in the next few weeks and is targeting to serve institutional investors and high net worth individuals with check sizes typically over $1 million. la. “This solution has the potential to meaningfully close the MSME funding gap globally — starting with India,” said Ganesh Rengaswamy, co-founder and managing partner at Quona.

Devarajan, co-founder of MoHash, previously worked at India Stack. Image: MoHash

For Devarajan, MoHash is an opportunity to write down standards that can be used globally, he said. Devarajan previously worked at India Stack, a non-profit organization that developed several infrastructure protocols including UPI, which is the most common way Indians transact today.

“With OCEN (Open Credit Support Network, open standards to facilitate different aspects of the lending value chain), we have designed a system where Indian platforms India can raise capital from Indian lenders. The only standard already working in the Indian market. At MoHash, we are building a global standard on ERC20 and this standardization means we have access to global capital and liquidity,” he said.

The startup’s vision has won some support.

On Thursday, MoHash announced it had raised $6 million in seed funding. The round was led by Sequoia India and Southeast Asia and Quona Capital. Ledger Prime, Jump Crypto, Hashed Ventures, Coinbase Ventures and CoinSwitch as well as Balaji Srinivasan and Polygon founders Sandeep Nailwal and Jaynti Kanani participated in the round.

Shailesh Lakhani, CEO of Sequoia India and Southeast Asia, said: “MoHash is bringing real assets to DeFi users globally and providing sustainable, irrelevant and hard-to-access returns. on the chain for the first time”.

“We think this is exactly the kind of product DeFi needs – one that takes advantage of blockchain and helps solve a real-world problem. We have enjoyed working with them over the past few months and Sequoia Capital India is delighted to co-lead this funding. “

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