Derivatives trading platform dYdX has just raised $10 million in its latest seed round from venture capital firms as we are reading more in our latest crypto news.
Venture capital coin is getting into DeFi like never seen before and now the derivatives trading platform dYdX is another that raised $10 million in a seed round led by DeFiance Capital and Three Arrows Capital as per the announcement. New investors include Hashred, SCP, Wintermute, GSR, Scalar Capital, RockTree Capital, and Spartan Group. The announcement added that it also got support from Kindred Ventures, Polychain Capital, and a16z:
— dYdX (@dydxprotocol) January 26, 2021”
dYdX is geared towards more experienced traders rather than users that are swapping on Uniswap. The infrastructure combines non-custodial and on-chain settlement with the off-chain low latency engine and order books to deliver the institutional-grade and low slipping trading experience. The user base and trade volumes grew dramatically in 2020 when bigger players tend to get more rather than just DeFi operations that bring only gas fees. It also added that cumulative trade volume across the margin, perpetual and spot trading increased 40 times and reached $2.5 billion in 2020, marking an increase since 2019.
🔥 This thread is great
I might have seemed anti token/ICO in the past but really I think projects should prove themselves before raising huge amounts of $
"VC bad" is lazy virtue signaling
I'm only bullish on projects that prove themselves by building new and useful stuff https://t.co/FVwSddhPrb
— Hayden Adams 🦄 (@haydenzadams) January 20, 2021
The announcement added that this funding will be used to decentralized parts of the stack and hand over control to the users in addition to adding new assets and features to the perpetual contracts. dYdX will be investing as well in international growth markets like Asia. There was some debate on whether these projects can actually be decentralized if they are backed by venture capitalists but in reality, they work like corporations with shareholders so the whales are able to gain control of the votes and the future direction of the protocol.
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