Friktion Labs, an Austin, Texas-based development organization building Friktion, Solana’s largest portfolio and risk manager — built for individuals, DAOs, and Institutional Asset Managers to generate returns across market cycles, raised $5.5m in funding.
Backers included Jump Crypto, DeFiance Capital, Pillar VC, Libertus Capital, Delphi Ventures, Sino Global Capital, Tribe Capital, Castle Island Ventures, Dialectic, Petrock Capital, Solana Ventures.
The company intends to use the funds to build Circuits, a novel liquidity and portfolio management system built to drive long-term capital inflows and return generation for DAOs.
Circuits enable a new generation of risk-aware DAOs — responsible for maximizing long-term value and managing capital (Current). Circuits are powered by Volts, Friktion’s native return generation strategies and Inductors, balancers and optimizers of Current. Through Circuits, DAOs will be able to access curated portfolio construction and risk management to scale the next generation of DeFi users. The company will also be launching a Taskforce grants program (Research Collaborators, Quant Research & Analytics, and User Research), bug bounties, and an Ecosystem Fund focused on development.
Friktion Labs is a team of quantitative traders, researchers, and crypto engineers with backgrounds in commodities, treasuries, volatility products, and crypto-assets. The organization has brought on board a group of derivatives traders and market makers in Genesis Trading, Alameda Research, LedgerPrime, QCP Capital, CMS Holdings, Orthogonal Trading, and GSR.
Three weeks into Mainnet launch, Friktion has over $100 million deposited across two strategies (Volts) and supporting 11 top crypto assets.