Seven Seas Capital, a decentralized finance (DeFi) investment firm, announced on December 10 the launch of its ETH DeFi Yield Fund, targeting institutional investors seeking exposure to Ethereum yields. The fund aims to generate returns of 10% against ETH through market making on decentralized exchanges and leveraged positions. This launch follows the firm’s track record of managing $2.8 billion in non-custodial investment vehicles over three years.
The fund’s strategy focuses on three main areas: providing trading liquidity, capturing arbitrage between ETH staking and borrowing rates, and exploiting ETH liquid staking token price spreads . Seven Seas has established itself in DeFi market making, with its vaults becoming major liquidity providers for ETH staked and reinvested on Ethereum, handling over $10 billion in trading volume. The company is expanding its operations to Ethereum Layer 2 networks to capitalize on market inefficiencies.
Co-founder and CEO Sun Raghupathi said: “We believe that Ethereum will see growth as the core layer of asset tokenization. Our investment goal is to turn ETH into more ETH. » The company’s technical infrastructure includes the development of vaults on Somm Finance and the creation of Veda, a yield layer used by DeFi applications like EtherFi. During stressful market events, including the collapse of Silicon Valley Bank and the withdrawal of USDC, the company maintained stable operations.
Seven Seas combines expertise in traditional finance, DeFi and technical development. The team includes smart contract developers, data scientists, and financial professionals focused on creating DeFi investment strategies accessible through traditional fund structures and non-custodial vaults.
The company plans to launch a Bitcoin DeFi Yield Fund as its next product, expanding its institutional offerings beyond Ethereum-based strategies. This development comes as institutional interest in cryptocurrency yield products increases, with companies seeking regulated access to DeFi yields. Seven Seas’ approach combines traditional fund structures with DeFi yield generation, meeting the growing demand for professional crypto asset management.
The fund’s launch represents a step toward transitioning traditional finance with DeFi yields, as institutional investors seek ways to participate in cryptocurrency markets through regulated vehicles while accessing the yields available in decentralized protocols. Seven Seas Capital’s ETH DeFi Yield fund is now open for institutional investment, and the BTC fund is expected to follow. The company operates from the British Virgin Islands and continues to manage its existing non-custodial investment products alongside new fund offerings.
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