As early as 2018, Compound and Aave were the first to introduce permissionless money markets creating pillars for what we know today as DeFi. Yet, after almost four years, little progress has been made for leverage-based DeFi primitives to rival the capital efficiency traditional finance offers. For instance, in traditional finance, prime brokerages offer high-leverage yield products sourced from various avenues. Prime brokerages require undercollateralized lending to provide these services; however, protocols like Aave and Compound, fall short because of low loan-to-value caps, limiting users' ability to fully leverage yield products. This gap results in less liquidity, as LPs are hesitant to take on smart contract risk for low yields. Currently, DeFi growth is bottlenecked by a lack of prime brokerage infrastructure. While existing iterations of decentralized prime brokerages have gained traction, many struggle with generalized leverage, leaving a need for additional prime brokerage infrastructure with protocols such as Blueberry.
Another salient issue in DeFi is the need for permissionless access to risk-free yield that treasury bills (T-bills) offer. Existing T-bill protocols require KYC, ultimately limiting capital flows and eliminating composability with “money legos” in DeFi. Despite this, real world assets (RWAs), particularly treasury yields, have very clear demand. Since 2023, RWA TVL increased from $750M to $4.3B. This massive growth reflects a broader trend of increasing retail and institutional interest in RWAs. For example, BlackRock deployed its first tokenized treasury fund, BUIDL on Ethereum, accumulating over $250M in TVL within a week of its launch. Additionally, Citibank started using Avalanche to explore the tokenization of private equity funds. Still, the problem persists in that the most prevalent RWA platforms require KYC, effectively creating walled gardens instead of a trustless and flexible financial ecosystem, that is until Blueberry.
Varys Capital is ecstatic to partner with Blueberry to build DeFi’s most flexible prime brokerage platform accompanied by a fully composable and compliant yield bearing stablecoin backed by U.S. treasuries. Through its product offerings: Blueberry Core, Bloom, and StakeUp, Blueberry is introducing a value flywheel for DeFi users, decentralized autonomous organizations (DAOs), and institutions to maximize on-chain yields.
How does Blueberry work?
Blueberry Core equips DeFi yield strategists with robust tools for enhanced on-chain capabilities and increased capital access. Its "position NFTs" merge collateral, debt, and deployment into one, allowing users to borrow up to 20x their collateral while ensuring system stability. Blueberry supports yield arbitrage, leveraged trading, and farming, enabling users to maximize returns by effectively utilizing borrowed assets and improving efficiency in DeFi markets.
Bloom and StakeUp bring the “risk free” rate from T-Bills to DeFi users without undergoing KYC. Bloom enables on-chain lenders to mint Term Bound Yields (TBYs), derived from T-bills, to earn a base APY of 4-5% in addition to yields from integrated DeFi protocols. StakeUp allows users to gain access to a fully composable yield bearing stablecoin that is minted and backed by Bloom’s TBYs, unlocking the capability for users to earn yield, whether sitting idle in a wallet, on Blueberry Core, or any DeFi protocol.
Supported by a DeFi-native team and community, Blueberry and its family of products will service major gaps in liquidity provisioning on-chain, ultimately paving the path for a more transparent and accessible financial ecosystem. Varys Capital is thrilled to support Blueberry, a leader at the forefront of the future of finance.
About Blueberry
Blueberry focuses on three primary products: undercollateralized lending, on-chain treasury yield, and yield strategies. Blueberry Core focuses on undercollateralized lending, providing investors access to on-chain leverage. Bloom offers a solution that tokenizes T-bills, offering users an APY of 4-5% alongside additional DeFi yields and allows people who can't access US Treasuries to buy them through Bloom. StakeUp introduces stUSD, a stablecoin backed by T-bills, aiming to be the first T-bill backed stablecoin that is fully composable within DeFi.
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 Abu Dhabi, UAE and Bangkok, Thailand. Twitter | Linkedin For more information, visit: https://varys.capital