The intent-centric DeFi protocol of Shogun recently secured $6.9 million in a seed funding round
Intensity Labs, the innovative force behind the intent-centric DeFi protocol Shogun, recently secured $6.9 million in a seed funding round. This impressive funding round was co-led by industry giants Polychain Capital and DAO5, with additional participation from notable investors such as Arrington Capital, Arthur Hayes’ family office Maelstrom, and Build-a-Bera. Angel investors, including prominent figures like Cobie, Ansem, Ser Shokunin, and Meltem Demirors, also joined the round, showcasing broad confidence in Shogun’s potential to transform the DeFi landscape, reported by The Block.
Background and Fundraising Journey
Intensity Labs initiated its fundraising efforts in January of this year, targeting a $5 million goal. However, the round quickly became oversubscribed by mid-February due to high demand, prompting the team to raise the target to the meme-worthy figure of $6.9 million. Co-founder Rahul Patel described the round as “oversubscribed” and noted that it was structured as a Simple Agreement for Future Equity (SAFE) with token warrants, leading to a fully diluted token valuation of $69 million.
Shogun was previously incubated by Binance Labs, which invested in the project as part of its incubation season 6 program. This early support from Binance Labs provided Shogun with a solid foundation to attract further investment and development momentum.
What is Shogun?
Shogun is an innovative DeFi protocol designed with a specific goal: to maximize Trader Extractable Value (TEV). TEV represents the potential maximum profit that traders can extract through various trading strategies. Shogun achieves this by routing liquidity through a hybrid model, combining intent-based fulfillment via market makers and centralized exchanges with on-chain fulfillment for long-tail assets through decentralized exchanges and passive liquidity vaults.
Intent-Centric Approach
Shogun’s intent-centric approach sets it apart from other DeFi protocols. By focusing on traders’ specific intents, Shogun optimizes trading strategies to extract maximum value. This proactive routing of liquidity not only enhances profitability for traders but also improves overall market efficiency.
Comprehensive Platform Access
One of Shogun’s standout features is its promise to provide users with a single platform to access every token on every blockchain. This seamless integration eliminates the need for multiple wallets or accounts across different chains, offering a unified interface for all trading activities. According to Brandon Comer, Intensity Labs’ co-founder, users can trade through various options, including a trading bot, desktop/mobile UI, and trading widgets hosted on other applications.
Shogun: The Plaid of Web3
Brandon Comer likens Shogun to fintech giant Plaid, but for the Web3 ecosystem. Just as Plaid revolutionized fintech by linking all banks together and enabling greater interactivity with personal finances, Shogun aims to achieve similar integration within the Web3 space. Shogun provides a Web3-as-a-Service (WaaS) platform, allowing non-crypto companies to easily incorporate DeFi functionalities into their apps with minimal effort.
Integration and Ecosystem Support
Shogun’s capabilities extend beyond mere integration. It enables any app to deploy its own cross-chain trading aggregator, akin to Solana-based Jupiter, but on a broader scale. This functionality has garnered interest from multiple ecosystems, including Boopiter, a meme-ified version of Jupiter for the Berachain ecosystem, and the Cosmos ecosystem through their Interchain Info service. Shogun is also in discussions with other major ecosystems within EVM L2s, MoveVM, and more, demonstrating its wide-ranging appeal and applicability.
Launch and Tokenomics
Shogun’s launch will occur in phases, beginning with its on-chain routing tool in the second quarter of this year. The protocol will feature its token, GUN, which will play a crucial role in the ecosystem’s functionality and governance.
Multiple Interfaces and Tools
Shogun is not just a singular platform; it is developing multiple interfaces to cater to various user needs and ecosystems. These include:
Berachain Integration: A dedicated interface for the Berachain ecosystem.
Cosmos Ecosystem Support: Integration with the Cosmos ecosystem through Interchain Info.
Shogun Oakmont: A cross-chain Telegram trading bot that enables traders to trade any asset on any chain with any token.
These diverse interfaces highlight Shogun’s flexibility and commitment to providing comprehensive DeFi solutions across different platforms and user preferences.
Team and Future Plans
Intensity Labs currently employs ten people, with plans to expand its engineering department to support the continued growth and development of Shogun. This expansion will enable the team to enhance Shogun’s capabilities and integrate with more networks, further solidifying its position in the DeFi space.
Strategic Partnerships and Collaborations
The successful seed funding round and the broad range of participating investors underscore the confidence in Shogun’s potential. The support from notable firms and angel investors provides Intensity Labs with the resources and network to drive Shogun’s development and adoption.
Vision for the Future
Rahul Patel and Brandon Comer have outlined an ambitious vision for Shogun. By creating a seamless, intent-centric DeFi protocol, they aim to transform how traders interact with decentralized finance. The goal is not only to maximize TEV but also to provide an unparalleled user experience that simplifies cross-chain trading and enhances market efficiency.
Intensity Labs, with its innovative Shogun protocol, is poised to make a significant impact on the DeFi landscape. The recent $6.9 million seed funding round, led by prominent investors and angel backers, reflects the strong belief in Shogun’s potential to revolutionize the industry. By focusing on maximizing Trader Extractable Value and providing seamless cross-chain trading capabilities, Shogun offers a unique and powerful solution for the DeFi community.
As Shogun continues to develop and launch its features, it will be interesting to see how it shapes the future of decentralized finance. With a clear vision, strong financial backing, and a dedicated team, Intensity Labs is well-positioned to lead the way in creating a more integrated and efficient DeFi ecosystem.
