Participated · Equity · Feb 2022

Potion Labs develops the Potion Protocol, a mathematical risk-management layer that allows DeFi liquidity providers to price options based on the Kelly Criterion and aggregates those curves to deliver optimally priced options to users. The company positions the protocol as an essential tool for managing crypto-asset risk, promising deeper and more reliable liquidity markets. To launch the protocol, Potion Labs is rolling out ‘Potion Unlock,’ an on-chain community game that releases the code into the public domain via an NFT mechanism. Ahead of this release, the team completed a $12 million limited pre-sale of the NFT collection, and a wider public NFT sale is planned. Potion Labs previously secured a $3.2 million round in August 2020 from top-tier DeFi investors. The founders emphasize a community-first approach to building Web3 public goods and plan to continue R&D on new decentralized services. Based in Barcelona, the company aims to set a regulatory and governance template for future protocol decentralizations.