Inversion Chain: First crypto private equity strategy founded by former ParaFi partner L1 | Ultra-early project attention

Author: Nianqing, ChainCatcher

On February 12, former ParaFi Capital partner Santiago Roel Santos announced Inversion Chain on social platforms . He said Inversion will focus on "real on-chain GDP" and by going on the chain, companies can fundamentally improve their operations and performance. Inversion chain will drive the world’s first crypto-native private equity strategy . The specific method is to acquire traditional enterprises and anchor them to the Inversion chain.

Previously, in November last year, Santiago Roel Santos announced the launch of the private equity fund Inversion Capital, which was also the prototype stage of Inversion Chain's philosophy. At that time, Santiago had decided to acquire traditional companies and use encryption technology to change its operational methods. At that time, he emphasized that he particularly emphasized that It is "acquisition" rather than allowing companies to cooperate and accept, which also means that Inversion Chain will be a customized, sovereign and clear L1.

It is reported that Inversion Chain will adopt Avalanche L1's customized chain technology. Inversion has nothing to do with the founder and the initial concept of the project, and in recent posts by Santos, he is also hiring CTOs and other members of the team. But this seemingly ambitious project has actually been sprouting.

About Founder Santiago Roel Santos

Santiag o Roel Santos is the founder of Inversion Capital, formerly a general partner of ParaFi Capital and the founder of EON Capital and Roca Capital. As an angel investor, he mainly focuses on technology, healthcare and other aspects. Previously, he worked for the JPMorgan Investment Bank financial sponsorship team, then invested at Sageview Capital and helped expand Internet and software companies, and since then served as a growth and research consultant at Elysium Health. He is one of JPMorgan’s youngest leader scholarship recipients and has received his bachelor’s degree in economics from Boston University in just 3 years.

Santos has a relatively important work experience as a partner at ParaFi Capital. ParaFi Capital is an institutional investor who has made advance arrangements and gained the lead in the DeFi field. It has invested in early DeFi protocols such as MakerDAO, Kyber Network, Aave, and Curve. Although Santos left ParaFi four years ago, he still inherited ParaFi's belief in RWA.

ParaFi Capital has invested in many RWA projects in recent years, including Kettle, the on-chain luxury watch trading market, the RWA lending agreement Centrifuge, and the real estate derivatives agreement Parcl. Last September, ParaFi also announced that it would tokenize part of its $1.2 billion portfolio through the Securitize platform on the Avalanche blockchain. This is also the first fund tokenization attempt, selling part of its latest venture capital fund equity to investors through tokenization, allowing more people to participate in opportunities that were originally limited to large institutions or wealthy investors.

In addition, Santos himself is also a very active angel investor, investing in more than 80 projects including Illuvium, Blast, StepN, NEAR, Manta, LayerZero, Blur, MegaETH, etc. (see the RootData page for details ).

What does Inversion Chain do?

Santiago Roel Santos believes that the biggest challenge facing the crypto market at present is the issue of adoption. In this regard, the solution he gave is to transfer traditional business to blockchain, and to drive real users to link through real enterprises.

One value Santos repeatedly mentioned on his personal social media is "Berkshire onchain".

Berkshire is a multinational multi-controlled holding company in the United States, with multiple subsidiaries under its jurisdiction. It was formerly a textile company. After Buffett obtained the operating rights in 1965, it properly allocated its retained profits and transformed into a holding company. Its subsidiaries cover a wide range of companies, including railways, energy, insurance, food, real estate brokerage and agency companies, etc.

Berkshire has an unusual business strategy. Buffett handed over key decision-making powers for subsidiaries to managers of various companies, an unusual decentralization. "Our power has almost reached the point of giving up," he wrote in a 2017 letter to shareholders. Berkshire has only 26 employees at its headquarters and does not have legal counsel, investor relations or public relations personnel.

Santos introduced that it hopes that through the link, companies can completely improve their operations and performance. Inversion L1 is tailored to promote the world’s first crypto-native private equity strategy, just as KKR completely transformed private equity acquisitions in the 1980s using financial engineering.

Inversion’s goal is to acquire traditional enterprises—replace inefficient infrastructure and systems with blockchain—build industry leaders with first-class profit margins—using blockchain technologies such as DePIN, stablecoins, and DeFi to build the largest chain. Up to the economy.

Inversion seeks to acquire businesses with mature distribution channels and sticky user base to ensure the largest and most efficient crypto-customer base.

Why choose Avalanche ?

Santos said in an interview that Avalanche is one of the only places that can “really” customize the chain for a specific use case and provide support covering all strategies. And allow Inversion to license its network at all levels, whether it is a validator, smart contract deployer, or transaction level, to maintain greater control and security where it is most needed. In addition, Avalanche also meets its requirements for privacy, EVM compatibility, native interoperability, Gas and customization of staked tokens.

In addition, another key point is that ParaFi Capital once invested in Avalanche, and perhaps the two parties have a foundation of cooperation and trust. After all, ParaFi itself also found Avalanche to try to make fund tokenization.