#MarshlandXplained — Waterfall DeFi

#005

Marshland
3 min readSep 7, 2021

Waterfall DeFi is the first proper risk diversification DeFi protocol that enables users to carefully optimize their yield farming strategy by investing in different “tranches” of a yield product portfolio.

Bringing True Risk Tranching to Decentralised Finance

Waterfall DeFi

Waterfall aims to give their users the ability to easily choose their investments on the trade-off between risk versus yield, product by product.

How it works

The Waterfall DeFi platform slices a portfolio of DeFi assets into different risk-adjusted return tranches. These tranches would enable both risk-averse and high risk-tolerance investors to generate expected returns from the same set of DeFi assets. Each tranche is classified based on its seniority and has unique expected yields, risk and maturity.

The key advantages of Waterfall DeFi tranches are:
1. Diversification: Users will be able to invest in a portfolio of various DeFi assets instead of just one asset, ensuring risk and reward diversification.
2. Leveraged Yield: Users that have higher risk tolerance will be able to earn a leveraged return on their existing investment strategies, such as providing liquidity to decentralized exchanges.
3. Fixed-APR products: More risk-averse users can choose safe fixed-yield APR options.

For more on ‘tranches’, head over to this blog article.

How risk tranching product is structured just like how a “waterfall” would look like

DeFi TVL just hit a record $157B and with the pace that this number is growing, it doesn’t look like interest will slow down anytime soon.

The Waterfall core team consists of professionals with years of experience in both traditional finance and the crypto-space, thus bringing expertise in the world of DeFi and wisdom from traditional institutional markets.

This is something that we at Marshland deeply value and can relate to.

Marshland x Waterfall DeFi

Here’s what Matthew Land, partner at Marshland, had to say about Waterfall:

Matthew Land — partner at Marshland Capital

On August 31 2021, Waterfall DeFi announced the completion of its seed round. This raise was led by GBV Capital, Divergence Ventures and Ascensive Assets, joined by other key strategic investors including AscendEX, ROK Capital, Boxmining, Genblock Capital, Morningstar Ventures, One Block Capital, Portico Ventures, Synaps and of course Marshland Capital. Additionally, notable angels from the DeFi sector including C.R.E.A.M. Finance’s Leo Cheng, Linear Finance’s Kevin Tai and IOSG Ventures’ Xinshu Dong were involved.

Total amount raised: $2m

For more on Waterfall, head over to their website, follow them on Twitter, check out their blog, and join their Telegram!

Follow our official channels to stay up-to-date on everything you need to know about our companies! Interested in more #MarshlandXplained? Check out the previous episodes of our series on LaunchX, SingularityDAO, Manifold & 2Crazy!

Marshland

Waterfall DeFi

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