How is Tykhe and your investment tracking?

At Tykhe, we continue to evaluate several exciting projects and have seen some great strides made by the companies we had invested in. Here are some callouts for the month of December: -

1. We completed a strategic investment into eDAO.co ($200,000, pre-series A), a company that enables immersive Web3 commerce infrastructure for brands, celebrities, and users across verticals. Since our investment, they have already partnered with Mintlab and are entering the European sports franchise market. The magnitude of this partnership is huge for eDAO as it brings £9M (GBP) in revenues through 2023-2026.
2. Odsy Foundation (Formerly dWallet Labs), a seed investment that we had done in August 2022 at a valuation of $27M is on the verge of closing its pre-series A round (valuation of $250M). Odsy is a protocol that facilitates a secure and programmable decentralized access control layer to all web3. We stay extremely bullish on the team and its roadmap.
3. Trust Machines has launched https://www.zestprotocol.com/. Zest is bringing the $ 120 Trillion bond market on-chain. Undercollateralized bitcoin liquidity for institutional borrowers & zesty yields for individual Bitcoin lenders.
4. Stan, India’s First Platform to Launch NFTs for Game Creators & Athletes was awarded the Best Innovative NFT Project by Animation Xpress – GEM awards. Backed by General Catalyst, Eximus Ventures & Tykhe, Stan is making strides as the leading Blockchain based esports fan engagement startup.
5. We have partnered with NAV Consulting, Inc., a US-based firm with $180 Bn assets under administration, to be our full-time fund administrator providing back-office support, reporting, auditing, compliance, financial statement preparation, and investor services. Soon we will provide access to all LPs to the online portal to track everything.
6. 2023 is going to be an expansion year for us at Tykhe. As the developer activity in MEA is reaching its peak, we shall be setting up offices in the region, starting with Dubai. Stay tuned for this!

Besides, all our portfolio companies continue to track well. We shall keep you updated on key highlights in the times to come.

Current Deal Flow

Buoyed by peak developer activity, we continue to evaluate some very interesting projects in the blockchain space. Our team is currently doing DD on 5 projects. Sneak Peek, we are in the final stages of making an investment in Theya. The below infographic gives a good idea about what they are doing. The deal is not yet finalized, but we thought it would be good to give you a heads-up.

How do we feel about the next few months?

Ethereum Shanghai Update

As we enter 2023, one of the most important events to look forward to is the Ethereum Shanghai Update. The update will enable withdrawals from Ethereum staking contracts, and significantly reduce the risk of staking ETH. This will provide an opportunity for liquidity staking protocols to grow. Projects like LDO, RPL, and SWISE are worth keeping an eye on, as they have seen significant growth recently.

On-chain analysis of Lido’s stETH & LDO token clearly shows that interest in Ethereum LSDs is on a rise as we enter 2023. In total, users have staked 4.8 million ETH through Lido, representing a value of $5.8 billion.

Here's a brief note from Ganesh (Investment Partner) unpacking the mystery around Liquid Staked Derivatives.

Ethereum L2 & Arbitrum

Ethereum's layer 2 (L2) solutions are expected to surpass $10 billion in total value locked (TVL), fueling a resurgence in the decentralized finance (DeFi) industry. This growth in TVL is expected to drive innovation and adoption within the DeFi space, as more projects and users are drawn to the scalability and lower transaction fees offered by L2 solutions.

Arbitrum, a layer 2 solution, is expected to become the second-largest L2 by TVL after launching its token. This will likely be a significant milestone for the project, positioning it as a major player in the Ethereum ecosystem.

From the Research Desk

Our research team has curated content from across the web. Hope you enjoy reading through the same!

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