Venture Capital Funds

Venture capital firms managing idle USDC or blue-chip tokens often seek short-duration, lower-risk yield. Through Xitadel, VCs can participate as investors by purchasing LTTs from trusted issuers. These instruments offer a defined term, fixed return, and transparent collateral structure. Unlike traditional DeFi yield products, returns from LTTs are paid from the issuer’s obligation, not from liquidity mining or token incentives. This structure appeals to funds looking for predictable income with enforced downside protection.

In addition to lending, VCs can also act as issuers. A fund holding vested or illiquid token allocations can use Xitadel to unlock working capital without liquidating its portfolio. For example, if a VC holds long-term token positions but wants immediate stablecoin liquidity to participate in follow-on rounds or fund internal strategies, it can issue an LTT against its holdings. Collateral is locked, capital is raised through the marketplace, and repayment occurs at maturity without permanent loss of token exposure.

This dual role enables venture funds to both earn yield on deployed capital and free up liquidity from treasury assets, depending on their strategic position. Whether acting as a lender or borrower, the LTT format fits into the operating model of professional fund managers who require structure, transparency, and defined risk limits.