Investing in Friktion

Looking at DeFis next phase of growth, the Pillar VC team sees sustainable yields and simplified product experiences leading the charge.

Historically, many of the DeFi market’s +20% yields have been driven by liquidity mining, non-optimal borrow:lend ratios, and rewards; all factors we don’t believe will persist long term. On top of this, user experiences have been complex, expensive, and slow, largely driven by poor characteristics inherited from Ethereum.

In an effort to create something better, the Friktion team saw an opportunity to build thoughtfully crafted structured products packaged inside ultra user-friendly experiences. Their structured product strategies leverage options and take advantage of things like market volatility to generate yields, sustainably. 

Creating options-based strategies on your own is possible but highly complex and time-consuming. 

Friktion abstracts away nearly all the complexity making it easy for anyone to understand and invest in creatively engineered strategies.

On top of the platform’s simplicity, the team has optimized for speed and low transaction costs by building on top of Solana.

We see structured products serving as a key tool for crypto-asset management and predict thousands of DAOs, companies, and funds will turn to Friktion for treasury management over the coming months and years.

In just three weeks since mainnet launch, Friktion has grown to $100,000,000+ in TVL with no rewards or incentives.

The next phase of Friktion’s growth will include many new yield strategies, support of new assets, and the development of adjacent DeFi products. 

We are thrilled to invest alongside Jump Capital, Delphi Digital, Three Arrows, Alameda Research, and others.  

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