Authors: Nic Roberts-Huntley (@albusdumbledapp) and Dillon Liang (@dill_sl)

Introduction

Today, we are thrilled to introduce Blueprint Finance and its mission to build a new foundation for on-chain credit and debt management backed by Hashed, Tribe Capital, Portal Ventures, SALT, Lightshift, Hypersphere and other leading investors.

Blueprint’s flagship product is the Concrete Protocol, an appchain purpose built for on-chain debt and credit. Concrete powers higher yields, liquidation protection, and advanced predictions across all of DeFi, starting with money markets.

"The team at Blueprint Finance uniquely merges institutional finance expertise with DeFi products. Their first offering, Concrete, unlocks capital efficient risk mitigation strategies that can be deployed on top of protocols across the existing $20B lending market. Our industry needs teams of this caliber and products like this for the next chapter of growth” - Evan Fisher, General Partner, Portal Ventures.

The Evolution of DeFi

Founded amidst the FTX crisis of 2022, we saw the durability of on-chain systems and the need for a more robust and capital efficient DeFi market.

Generating working capital is the mechanism that perpetuates financial markets globally. We have seen this play out within DeFi with lending being a top use case - driving billions in volume and TVL.

DeFi money markets are structurally akin to traditional futures contracts. Users are effectively long the underlying collateral asset and are charged a funding rate by the lender to carry that risk. However, should the asset correct abruptly, no party is well positioned to carry the position and therefore, the issuer is responsible for restructuring and redistribution - leaving protocols with bad debt or forcing users into asset liquidation.

The common structure in DeFi money markets creates an ill defined spread between bid and ask in periods of volatility. This exposes users to significant potential losses, issuers to bad debt accrual or selling assets under duress, and if significant selling is pressured this can trigger broader liquidation cascades.

“Blueprint Finance was born during the massive de-leveraging of crypto assets in 2022. At the time, investors and traders had few tools at their disposal to protect themselves from black swan events. Blueprint is building decentralized software, Concrete, that could help safeguard future traders from major market events – this is critically important to the safety and growth of crypto worldwide” - Boris Revsin, Managing Director, Tribe Capital.

Concrete: On Chain Debt & Credit System

Credit is the crucial missing link within on-chain finance and Concrete is the native base protocol to generate credit products and derivatives for DeFi natives. It additionally opens the gateway to build an entirely new set of financial primitives for on-chain assets using Concrete as the base layer of compute.

At launch, Concrete will serve users across money markets such as Aave, Compound, Silo, and Radiant, regularly adding both established and emerging lenders. Concrete will also work with adjacent verticals such as perpetual DEXs and NFT finance.

Concrete uses a series of quantitative methodologies to power its Probability Engine, which calculates and generates unique protection agreements which protect users from liquidation. Modular by design, the Probability Engine can be accessed through the appchain or embedded directly into partner protocols through the upcoming SDK.

The Probability Engine is the heartbeat of Concrete and these protection policies are issued as contracts that facilitate the automatic distribution of credit during market volatility - protecting user assets from liquidation.

Concrete is deployed as a hub and spoke model to seamlessly integrate with new chains and lenders across EVM, SVM, and Move VM environments. The Probability Engine and Concrete hub is hosted on Concrete’s appchain and utilizes LayerZero messaging to issue and manage protection products across the connected spoke chains. Beyond liquidation protection, users can leverage Concrete for the highest risk-adjusted yields in DeFi using Concrete’s aggregator that programmatically allocates deposited liquidity in Concrete to the highest yield pools across DeFi and uses idle liquidity to fund short term liquidation protections. Dramatically boosting rates of return.

At scale, Concrete is a new foundation for on-chain finance - becoming the basis for a new class of credit, debt, and structured products, capturing the next phase of growth for crypto.

“We believe Concrete will be the key driving force behind rebuilding transparency and confidence in a secure on-chain financial system. The founding team brings a wealth of knowledge from both compliant financial backgrounds and crypto native experiences to build this foundational layer" - Baek Kim, General Partner, Hashed.

Who We Are

We are a globally distributed team of quantitatively minded builders deeply passionate about advancing the state of on-chain finance and have worked across both traditional finance and crypto - hailing from Point72, Morgan Stanley, Galaxy Digital, Caxton, Tala, Polkadot, Eco, and more.

We believe that solving debt and credit for DeFi will bring a fundamental shift to the ecosystem - if this mission resonates with you please reach out at - hello@blueprintfinance.com.

Our Financing

We’re excited to announce $7.5M in funding led by Hashed and Tribe Capital. They are joined by SALT, Kyber, Hypersphere, Lightshift, Awesome People Ventures, Veris Ventures, Kronos Research, WWVentures, Avalanche Foundation, Terra Nova, and Hyperithm.

A special thank you to Portal Ventures who led our Pre-Seed Round, with participation from Picks & Shovels and Canonical Crypto.

Sign up on https://www.concrete.xyz/ to join the waitlist and to receive the latest updates.

Follow along on Twitter and join the community -

Concrete Protocol: https://twitter.com/ConcreteXYZ

Blueprint Finance: https://twitter.com/Blueprint_DeFi

Telegram: https://t.me/+EGF38FzI20M0NmI