UAE Crypto Startup Resolv Labs Secures $10 Million in Seed Funding

UAE crypto startup Resolv Labs has raised US$10 million in seed funding from several prominent investors. Founded in 2023, the company focuses on delta-neutral investment strategies aimed at reducing market volatility and risks. Their yield-bearing stablecoin addresses the need for stability and returns in the growing stablecoin market, which is currently valued at over US$227 billion.

UAE crypto startup Resolv Labs has successfully raised US$10 million in seed funding. The funding round was spearheaded by Cyber.Fund and Maven11, with participation from other notable investors such as Coinbase Ventures, SCB Limited, Arrington Capital, Animoca Ventures, Gumi Cryptos, NoLimit Holdings, and Robot Ventures. Established in 2023 by Ivan Kozlov, Fedor Chmile, and Tim Shekikhachev, Resolv Labs aims to enhance delta-neutral investment strategies in the cryptocurrency sector. The funds will assist in extending these strategies and integrating them with institutional digital asset managers.

Resolv Labs’ use of delta-neutral strategies is crucial for addressing the volatility in cryptocurrency markets, an aspect that has historically made institutional investors cautious. These strategies are designed to minimise price exposure while still capturing potential yields. Their 2023 research showed that altcoin-based strategies achieved annual profits of up to 17.94% while limiting drawdowns. Developed from traditional finance practices, delta-neutral positions allow traders to profit from market volatility while hedging against price fluctuations.

The stablecoin market has exceeded US$227 billion, indicating a significant demand for stability in cryptocurrency. However, many existing solutions do not integrate yield generation. Resolv’s two-tiered risk structure innovatively distinguishes between conservative yield seekers, represented by USR holders, and higher-risk investors, represented by RLP token holders.

Resolv’s yield-bearing stablecoin signifies an advanced stage in stablecoin evolution, focusing not only on stability but also on generating returns. Currently, most stablecoins, such as USDT and USDC, dominate the market but fail to yield returns, making Resolv’s offering appealing as businesses turn to stablecoins for cost-effective payments and treasury management. Their swift accumulation of $600 million in managed assets post-launch indicates strong market interest in yield-generating stablecoins.