CoinFund has made a strategic seed investment in Rho Labs, the creator of Rho Protocol, which aims to launch the first cryptonative interest rate derivatives market on Arbitrum.

Target Information

CoinFund has announced its seed investment in Rho Labs, which is the developer of Rho Protocol, the first-ever cryptonative rates exchange. This innovative platform aims to bring the functionality of onchain interest rate derivatives to the cryptocurrency market, facilitating the management of interest rate risk traditionally available only in conventional finance. Rho Protocol offers a non-custodial, institutional-grade trading environment where users can engage in fixed versus floating rate swaps, expanding the risk management capabilities available to crypto investors.

The Rho Protocol is strategically positioned as it develops a comprehensive interest rate derivatives market on Arbitrum. Founded in 2022 by Alex Ryvkin, a seasoned professional from traditional finance, the platform aims to provide stability and transparency for crypto-specific rates, such as staking yields and perpetual funding rates. With a talented team of engineers and technologists, Rho Labs aims to revolutionize how interest rate risk is managed within the crypto space.

Industry Overview in the Crypto Space

The cryptocurrency and blockchain industries have seen rapid growth over the past few years, yet they still face challenges, particularly in establishing reliable financial instruments like interest rate derivatives. Despite the commonly acknowledged presence