In the fast-moving world of digital assets, liquidity is the oxygen that keeps projects alive. Without reliable secondary markets, token issuers often struggle to provide stability for their communities and investors. This is where structured OTC deals, perpetual markets, and exchange collaboration come together to unlock sustainable growth for the most promising crypto projects. At Enflux, we specialize in bringing transparency and precision to this process.

What Big OTC Deals Are

Large OTC transactions are structured agreements between a token project and institutional investors, designed to inject capital without disrupting the open market. Instead of relying on fragmented retail demand or smaller daily OTC deals, projects can secure a single treasury injection in the range of $500,000 to $5,000,000. These transactions generally include a negotiated discount of around 30%, compensating the investor for the capital commitment and the associated lockup. Tokens are rarely released immediately. Instead, they follow a vesting schedule, often beginning with a 4-month cliff and continuing with a 4-month vesting period (or a variation of this mix). By staggering the release of tokens, sudden market pressure is avoided, and both the project and investors remain aligned over time.

When a Project Is Qualified for Bigger OTC Deals

Not every project is ready to raise millions in a structured OTC deal.

Certain foundations must be in place before such capital injections are possible. The token must already trade on liquid venues, most often with a Binance or Bybit perpetual listing, so that hedging can be executed. The market must demonstrate sufficient depth and open interest relative to the deal size, ensuring that positions can be entered and maintained without destabilizing prices. Spot market liquidity is also an important factor, as healthy trading volumes across tier-1 exchanges add to overall stability. Beyond market mechanics, projects must complete KYB and KYC processes, work together, in collaboration with the OTC investor, with a trusted escrow custodian to manage settlement, and present a clear business case for how the capital will be used. Only when these elements are in place can a project reliably attract institutional investors to participate in larger OTC deals.

The Importance of a Perps Market

Perpetual futures markets are the cornerstone of this entire model. By taking an equal and opposite position in perps, OTC Investors such as Enflux can eliminate price risk for the investor, which allows investors to participate in multiple deals quickly as OTC deals turn into a trading decision rather than an investment decision. If the token appreciates or declines, the hedge offsets those movements, leaving the investor’s return driven solely by the structured discount and vesting upside. This transforms what would otherwise be an uncertain speculative trade into a predictable, risk-adjusted transaction. Perps listings are therefore not just speculative tools but the infrastructure that makes sustainable OTC funding possible. Without liquid perp markets, investors would remain exposed to price volatility that could overwhelm any advantage from the discount.

The Process

Executing a large OTC deal follows a structured path designed for transparency and security. The project and investor begin by agreeing on the ticket size, discount, vesting, and referral terms. Once finalized, the project transfers the required tokens into an escrow account managed by a custodian such as Bitgo. At the same time, Enflux or its investment partners wire the agreed amount of USDT to the same escrow. When custody is confirmed, the project receives immediate access to its capital. To neutralize exposure, Enflux establishes a corresponding hedge in the perpetual market. Over time, as the vesting schedule unlocks tokens from escrow, the investor receives them gradually, ensuring alignment with market stability throughout the process.

Example Business Case

A $1,000,000 OTC deal offers a clear illustration of how this structure works in practice. With a 30% discount, the investor receives tokens worth $1,000,000 for only $700,000. A small referral fee may apply depending on partner involvement, while hedging activities across perp and spot markets introduce some slippage. Even accounting for these factors, the profit margin on the transaction falls between 15% and 25%. For this ticket size, that represents a profit of $45,000 to $75,000.

The capital is locked for an average of 6.5 months, shaped by a 4-month cliff and a subsequent 4-month vesting period. Annualized, the return on this deal ranges between 27.69% and 46.15%, assuming funding rates remain neutral. For the project, the structure delivers a full $1,000,000 in usable liquidity, providing resources for operations and growth. Because the tokens are released gradually rather than in a single tranche, there is no sudden oversupply on secondary markets, which protects price stability. For the investor, the combination of discount, hedge protection, and predictable unlocks results in a reliable and risk-adjusted path to return.

Advantages of Structured OTC Deals

The appeal of structured OTC deals lies in the fact that they create measurable benefits for both sides. Projects receive a direct liquidity injection, giving them immediate access to capital that can be deployed for operations, treasury management, or strategic initiatives. The gradual vesting schedule reduces the risk of a sudden sell-off, protecting the token’s market performance and safeguarding the interests of existing holders.

For investors, predictable returns are one of the main advantages. With clear discounts and hedging in place, profit margins of 15% to 25% are achievable within an average holding period of 6.5 months. The use of escrow and KYB/KYC processes adds transparency and security, minimizing counterparty risk. Collaboration with exchanges ensures that perp markets are liquid enough to hedge efficiently, while the involvement of trusted custodians reduces operational risk. Structured OTC deals therefore combine profitability with a high level of security and accountability.

Risks to Consider

As with any financial structure, risks remain. A sudden decline in perp market liquidity can make hedging difficult, while illiquid spot markets or unexpected project failures can undermine deal value. Custodian risk is always present, even when using reputable providers, and short squeezes may create unanticipated costs if hedge sizes grow too large. At Enflux, these risks are actively managed by monitoring perp liquidity in real time, diversifying escrow solutions, and dynamically adjusting hedge positions.

Conclusion

For projects, the real strength of large OTC deals lies not only in the capital they provide but also in the strategic flexibility they unlock. A secured injection of funds enables teams to plan with confidence, knowing that runway is extended and that operational or growth initiatives can be executed without constant uncertainty over market conditions. This type of financing removes the pressure of short-term survival and allows projects to think bigger, pursue ambitious partnerships, and strengthen long-term fundamentals. Another benefit is the signaling effect. When a project successfully closes a structured OTC transaction with reputable partners, it demonstrates to the market that institutional players consider it credible and investable. This validation often has a ripple effect, attracting further interest from exchanges, funds, and community participants who see that the project has earned the trust of sophisticated investors. It is not simply about the money raised but about the doors that open as a result. 

There is also a governance dimension. With vesting and escrow arrangements in place, the project’s token economy becomes more predictable, which can strengthen the confidence of existing stakeholders and make future decision-making less reactive. Knowing that inflows and token unlocks are managed in a controlled environment, the team can focus on governance, utility, and user growth rather than being pulled into constant firefighting around liquidity shocks.

Finally, the discipline that comes with executing such a deal often leaves projects better prepared for future fundraising. Having gone through KYB and KYC procedures, worked with custodians, and established hedging frameworks, they gain experience in operating with institutional standards. This makes them more resilient and more appealing for subsequent investors, both inside and outside of crypto. In this way, large OTC deals are not just a financing mechanism but a catalyst for a project’s evolution. They provide the stability to build, the validation to attract partners, the structure to govern effectively, and the credibility to scale further. For teams serious about growth, they can be the bridge that transforms potential into long-term success.

‍