Exclusive: DeFi yield platform Upshift exits stealth

Upshift is being spun out of August, which raised $10 million earlier this month

article-image

Upshift and Adobe Stock modified by Blockworks

share

This is a segment from the Empire newsletter. To read full editions, subscribe.


There’s a new institutional-grade DeFi yield platform in town, we’ve exclusively learned. 

Upshift, which aims to give retail access to yield opportunities typically available for hedge funds, is being spun out of prime brokerage firm August and is coming out of stealth. 

The platform already has around $250 million in deposits, the team told me.

“If you look at the value prop today, DeFi’s super complicated,” Upshift CEO and August co-founder Alexandre Elkrief explained to me. 

“It’s across three main axes: It’s fragmented, it’s hard to access, and it’s a lot more complex to manage fragments, obviously, because we’ve gone from one chain to a gazillion chains. It’s clear that it’s not gonna stop today. [August supports] 15 chains, right? And so the retail user is not gonna rebalance their position across that many different opportunities, and it’s becoming a full-time job,” Elkrief continued.

Elkrief and fellow co-founder and CEO of August, Aya Kantorovich, are no strangers to this space. Kantorovich was part of the founding team for brokerage firm FalconX, and Elkrief spent some time running the books for a DeFi hedge fund. The two initially started working on Fractal, later rebranded as August, and began fundraising right before the FTX collapse and closed the deal “the week that FTX collapsed,” Kantorovich told me.

She admitted both founders felt like they lost a couple of years off their lives after that, but it also solidified their belief in the need for both an August and an Upshift in crypto.

And so far, their work has paid off. August raised $10 million in a round led by Dragonfly earlier this month. It focuses on giving institutions DeFi access by connecting them to networks like Aave or Uniswap, and facilitates roughly $7 billion in monthly volume. 

Upshift, which has been in beta since last September, is focused on the retail side of things. That was a focal point for me given that we haven’t seen retail activity levels return just yet.

“Our hypothesis is that it’s a question of complexity,” Elkrief said. Retail’s really been forced to focus on things like memecoins, which are obviously out of style now. 

And this market is focused on “rewarding simple products,” Kantorovich noted.

“If you just zoom out for a second, the value proposition of yield is generally the onboarding mechanism for all types of new financial products. Crypto aside, Marcus by Goldman Sachs started attracting users by having a 4% savings account, right? … We’re giving every asset issuer the opportunity to augment their product with a yield-bearing option.”

Essentially, asset issuers can then partner with hedge funds or managers to curate and package the product to offer yield. Hopefully, on the flip side, also driving onboarding to said product. 

While the August roadmap is about integrating a custodian, Elkrief said, Upshift’s going to become a product by itself. The team is “working through” the motions to split the August and Upshift teams apart currently, with Elkrief taking the helm. 

Thanks to the lack of regulation currently, Upshift isn’t something that can be offered to US users, though both Kantorovich and Elkrief are eager for the day that path opens up.

But for now, Upshift’s focused on “making some noise” and getting to $1 billion in deposits. Then, in the next 18 months, the plan is to hit $2 billion or $3 billion. 

Easy peasy.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template.png

Research

The march toward an interoperable and onchain-by-default internet depends on reliable messaging and value transfer across heterogeneous domains. Crosschain protocols now process >$1.3T in combined annual transfer volume and secure tens of millions of user interactions, yet no single design dominates.

article-image

The goal, per Santiago Santos, is to make crypto a relatable piece of tech for people who may not even understand it

article-image

Stripe stablecoin unit aims to operate under a federal charter enabling regulated stablecoin issuance and custody services

by Blockworks /
article-image

Will TradFi make crypto better or create more problems than it solves?

article-image

Subtle decisions by risk curators saved Aave from significant turmoil

article-image

The new Rootstock Institutional unit aims to connect professional investors to Bitcoin-native yield and liquidity strategies anchored in BTC’s security layer

by Blockworks /
article-image

DOJ files record civil forfeiture against more than 127,000 BTC linked to scam activity

by Blockworks /