Pear Protocol Secures $4.1M Strategic Funding Led by Castle Island to Integrate Hyperliquid for DeFi Trading

Pear Protocol, a decentralized pair trading platform, has announced the launch of a native integration with Hyperliquid, a decentralized perpetual trading platform, alongside the completion of a $4.1 million strategic funding round led by Castle Island Ventures. The funding round also included participation from Compound VC, Florin Digital, and Sigil Fund, marking a significant step in the protocol’s growth trajectory as it approaches $1 billion in total trading volume. The integration enables seamless perpetual pair trading on Pear’s platform, offering users access to real-time market depth and execution tools tailored for sophisticated traders [1].

The Hyperliquid integration enhances Pear Protocol’s user experience by combining advanced functionality with simplicity. Traders can now execute pair trades with one-click entry and exit for both legs, leveraging tools such as limit orders, TWAP (Time-Weighted Average Price) orders on trading ratios, and risk management features like take-profit and stop-loss ratio-based logic. Additionally, direct ratio charting, net funding differential analysis, and customizable pair-weighting tools provide precise control over positions, making complex strategies more intuitive and capital-efficient [2].

The $4.1 million investment underscores investor confidence in Pear Protocol’s vision to bridge traditional and decentralized finance. Castle Island Ventures, known for its focus on blockchain infrastructure and DeFi innovation, highlighted the platform’s ability to unite deep liquidity with a seamless user experience. The funds will be allocated to enhance institutional-grade product development, expand API integrations, and strengthen security protocols. The protocol also plans to reintroduce its spot token with deeper liquidity via Hyperliquid’s Spot Orderbook and explore long-term sustainability through protocol buybacks and new revenue streams [3].

The timing of the funding announcement aligns with a period of heightened activity in the DeFi sector. Institutional investors are increasingly allocating capital to projects offering scalable solutions for cross-chain trading and institutional-grade tools. Pear Protocol’s focus on institutional onboarding—through features like custody solutions and compliance frameworks—positions it to capture a segment of the market dominated by centralized platforms. The involvement of top crypto venture capital firms signals recognition of Pear’s potential to streamline trading workflows and reduce counterparty risk [1].

The integration with Hyperliquid addresses liquidity fragmentation in the DeFi ecosystem by enabling direct access to Hyperliquid’s order book. This allows traders to execute arbitrage strategies and manage positions across multiple chains without intermediaries, aligning with broader trends prioritizing interoperability and user experience. Analysts note that such integrations could accelerate decentralized trading adoption, particularly among institutional participants seeking transparency and efficiency [3].

Pear Protocol’s founder, Huf, emphasized the significance of the integration, stating that Hyperliquid is where the best traders are and that the platform now provides the optimal way to pair trade on its liquidity. The funding, he added, represents a turning point, as investors’ deep understanding of the space will drive execution and growth [2]. Wyatt Khosrowshahi of Castle Island Ventures praised Pear Protocol for its role in advancing DeFi trading infrastructure, highlighting its combination of liquidity depth, user experience, and execution mechanisms [3].

The $4.1 million raise follows a broader pattern of venture capital interest in DeFi infrastructure, reflecting the sector’s resilience amid macroeconomic uncertainties. Pear Protocol’s dual focus on infrastructure development and strategic partnerships positions it as a contender in the competitive DeFi landscape. The integration and funding represent a clear vote of confidence from investors, signaling the protocol’s potential to scale its offerings and solidify its role in the decentralized trading ecosystem.

Source: [1] [Pear Protocol Integrates Hyperliquid, Secures $4.1M Strategic Funding Led by Castle Island Ventures] [https://www.ainvest.com/news/pear-protocol-integrates-hyperliquid-secures-4-1m-strategic-funding-led-castle-island-2507/]

[2] [Pear Protocol Launches with Hyperliquid and $4.1M Round Led by Castle Island] [https://coinjournal.net/news/pear-protocol-launches-with-hyperliquid-and-4-1m-round-led-by-castle-island/]

[3] [Pear Protocol Goes Live with Hyperliquid Integration] [https://cryptoslate.com/monero-community-pushes-back-as-qubics-51-hash-rate-bid-falters/]