DeFi Protocol AlloyX Raises $2M, Introduces Aggregation Platform for $530M+ RWA Loans On Chain

AlloyX, a decentralized finance (DeFi) protocol that aggregates tokenized credit, announced today the launch of a liquid real-world asset (RWA) vault product after closing a $2 million pre-seed funding round “led by Hack VC, with investments from Circle Ventures, Digital Currency Group, Stratos, Lecca Ventures, MH Ventures, very early Ventures, Archblock, dao5, and Credix Finance.”

With this funding, AlloyX has integrated “with nine credit protocols to date and is building the industry’s first blended investment vault with its partners Credix Finance and a tokenized U.S. Treasury Bills protocol.”

This investment vault taps “into the more than $530 million2 active loans onchain in the private credit market by combining Credix’s high-yield, overcollateralized tokenized private credit investment with highly liquid tokenized U.S. T-bills.”

As a result, investors such as decentralized autonomous organizations (DAOs) can “gain access to liquidity, yield and diversification in tokenized credit.”

Tokenized credit refers “to digital tokens backed by real-world assets, such as loans or debt instruments.”

Compared to crypto loans or liquidity pools, tokenized credit investments typically “carry an initial lockup period and lower liquidity.” Using AlloyX, investors and DeFi protocols can create strategies blending tokenized U.S. T-bills “with the highest volume and deepest liquidity of RWA available to achieve attractive yields.”

Alexandre Liege, CEO at AlloyX, said:

“As we saw during the crypto market crash in 2022, investors wanted to exit positions from RWA lending pools. But it was hard to get out of these real-world loans with years left before maturity. The composability and flexibility that make DeFi valuable need to be available for RWA as well. To achieve this, we are building products to enable our community to invest and create RWA diversified baskets with automatic reinvestment, similar to what Yearn Finance created for digital assets.”

AlloyX allows protocols, DAOs and institutional investors “to build diversified investment strategies in real-world assets.”

Investors easily access attractive yields “from tokenized credit pools and provide liquidity to loans on chain.” By integrating and aggregating investments “from major credit protocols such as Credix Finance, Goldfinch, and Centrifuge, AlloyX provides crypto lenders with a flexible and efficient platform to manage RWA investments tailored to their yield, risk and liquidity preferences.”

Chaim Finizola, Co-founder and Chief Growth Officer at Credix Finance, said:

“We’ve seen demand from DAOs eager to allocate capital in the RWA space but are looking for flexible and liquid options that would work for them. Hence we’re excited to see the AlloyX team launch the first of its kind blended vault to give investors exposure to private credit while benefiting from the liquidity of U.S. T-Bills.”

AlloyX has now “reached $5 million in total value locked (TVL) and generated yields above 18% on average since inception in 2021.” This blended vault will “be live in early Q3 2023.” The team plans to integrate “with additional DeFi protocols and launch more investment vaults later this year.”

As noted in the update, AlloyX is “a DeFi protocol that makes it easy and accessible for protocols, DAOs and institutional investors to build diversified investment strategies in real-world assets.”

Founded in 2021, the company is on “a journey to offer investors and partners a flexible and efficient way to build and manage their real-world asset investments while optimizing for yield and liquidity.”

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