Derivatives Trading Platform dYdX Raised $10M In Seed Round

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:

“We’re excited to announce that dYdX has raised a $10M Series B round led by Three Arrows Capital and DeFiance Capital! https://t.co/uZ2wFoyv3e@zhusu @Arthur_0x @DeFianceCapital

— 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

In terms of users, unique wallets are depositing funds into the exchange’s smart contracts increasing by five times from 8000 wallets to 38,588 wallets until December 31. It added that since the beginning of 2021, the total trade volume surpassed $3.5 billion and according to Defipulse.com the exchange-listed at the 18^th spot on the TVL list with a near all-time high of $145 million locked.

In terms of users, unique wallets depositing funds into the exchanges’ smart contracts increased by almost five times from 8,000 wallets to 38,588 wallets through December 31. It added that since the start of 2021, the total cumulative trade volume has surpassed $3.5 billion. According to Defipulse.com, the exchange was listed at eighteenth on the TVL list with a near all-time high of $145 million locked.

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.