Investing in SteakHut Labs: The DeFi Liquidity Layer

Uniswap introduced concentrated liquidity in March 2021, bringing new levels of capital efficiency to DeFi and AMMs. Unlike previous AMMs, however, Uniswap v3 pools require some level of market-making to maintain liquidity around active price ticks. Early innovators such as Arrakis Finance made it easy to “set and forget” Uniswap v3 liquidity, but the onset of new concentrated liquidity models introduced a need for additional market-making infrastructure, such as SteakHut Liquidity.

Varys Capital is excited to partner with the SteakHut Labs team to build the future of on-chain liquidity, a platform that creates a “one stop shop” for DEX liquidity across chains and protocols. Today, SteakHut Labs is the only third-party team supporting automated rebalancing of Trader Joe v2 pools, with Uniswap and Camelot support coming soon. There is a clear path to scaling the Liquidity product across additional chains and DEXs, with concrete value accrual for $STEAK holders.

The major upside case for $STEAK holders is multiple Steaking applications, with platform fees from all SteakHut-supported chains flowing through stakers on Avalanche—as opposed to fragmenting platform fees by blockchain. By supporting many DEXs and chains, with additional products and use cases, $STEAK will naturally re-rate to account for its significant value accrual.

The seed round led by Varys Capital brings together a host of very strategic partners, including Blizzard (the Avalanche ecosystem fund), Avalaunch, Benqi, Camelot, and GMX. These investors all bring strategic value to the capital table, as partner protocols with potential to integrate SteakHut directly into their application.

How does SteakHut work?

SteakHut uses its own backtested models and Chainlink Automation to automatically manage users’ DEX liquidity, accounting for periods of high volatility and avoiding excessive rebalancing and impermanent loss.

And something big is coming to SteakHut Liquidity: creator tooling, so anyone can use SteakHut’s infrastructure to create their own vaults. Soon, you will be able to pick your token pair, DEX, chain, rebalancing model, privacy settings, and management fee for your own vault—creating a flywheel of attracting new users and creating deeper liquidity.

We expect this new feature to attract some of the most talented minds in DeFi and professional market-makers due to the potential to earn fees on their own vaults.

Beyond SteakHut Liquidity, the platform has other products such as Vaults built on Aave and a robust $STEAK staking portal, aptly named “Steaking.” There is high potential for additional products and lending protocol integrations (as is already done with DeltaPrime), with all value flowing through their native token, $STEAK. Stakers can allocate their xSTEAK to any chosen module, such as Rewards, with new modules such as Bribes able to be introduced in the future.

Holy Steak from the STEAK.jpeg collection
Holy Steak from the STEAK.jpeg collection

SteakHut is a truly groundbreaking protocol for DeFi liquidity and fills a major gap for Trader Joe v2- and Algebra-based DEXs, with Uniswap v3 compatibility and tooling. The team has done an amazing job building a sustainable platform and strong community, and we could not be more excited to partner with them on this journey.

About SteakHut Labs

SteakHut Labs is focused on developing solutions for on-chain liquidity and market-making. The team develops smart contract-enabled applications and permissionless tooling that incorporate decentralized blockchain technology to bring market-making solutions to DEXs across Web3.

SteakHut Liquidity is a DeFi-native platform enabling liquidity providers and market-makers to permissionlessly access a suite of liquidity management tooling and data analytics to seamlessly manage liquidity across AMMs. SteakHut Liquidity solves the problem of on-chain liquidity fragmentation by aggregating active liquidity management into a single dedicated platform.

About Varys Capital

Varys Capital is a global, multi-strategy digital asset fund and market-maker that invests in and supports early-stage and growth-stage companies building blockchain-enabled businesses. We are a highly differentiated capital partner with a deep understanding of the digital asset ecosystem and a proven track record of success as investors and operators. We provide our portfolio companies with access to capital, expertise, and a network of relationships to help them scale and succeed. Varys Capital was established in 2018 and is headquartered in Bangkok, Thailand with a UAE expansion underway.

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