DerivaDEX Is The New Coinbase-Backed Derivatives Exchange

The derivatives-centric decentralized exchange DerivaDEX is the latest creation backed by Coinbase, ammassing an all-star roster of early investors right ahead of its Q3 2020 launch.

Focused on the trading of derivatives contracts, DerivaDEX has come out of stealth ahead of a proper launch later this year. Already, we can see that the exchange has a sizeable list of well-known backers.

Raising $2.7 million in financing through a pair of rounds, DerivaDEX is viral in the Coinbase news and is proud to have investors such as Polychain Capital, Coinbase Ventures, Electric Capital, Dragonfly Capital Partners, CMS Holdings, Three Arrows Capital, Compound strategy lead Calvin Liu, and the popular crypto researcher Phil Daian.

The exchange is built on Ethereum and will be a community-owned one with a unique “(sane) liquidity-mining token model,” as the co-founder of DerivaDEX and CEO Aditya Palepu wrote in a Medium post.

On the other hand, the exchange will also have its own DDX token, allowing holders to participate in governance and operations. As Palepu shared in the official announcement on Medium shared in our crypto news today:

“DeFi has, for the most part, been led by teams with very theoretical mindsets. These projects sound nice on a whitepaper, but ultimately don’t lead to material adoption and user acquisition. We owe a lot to the pioneering teams that have come before us in our space.”

He also talked that “DeFi has a glaring problem converting crypto enthusiasts from centralized venues, much less winning over the masses” and said that DerivaDEX is here to bridge that gap.

By addressing those issues, DerivaDEX will use a DAO (decentralized autonomous organization) to mitigate single point of failure and censorship resistance concerns, plus having an on-chain settlement without the use of an automated market maker (AMM) format used by many other DeFi projects. Also, its liquidity will be boosted via DerivaDEX and its incentivized mining model, Palepu wrote.

Planned to go live sometime during Q3 of 2020, DerivaDEX will certainly shake the field of decentralized exchanges, bringing a lot of new opportunities for adopters, including testnet competitions, early access to the platform, affiliate options, testnet competitions and opportunities to earn DDX tokens before its launch.