Decentralized Exchange dTrade brings derivatives trading to the Polkadot ecosystem after concluding a $ 6.4 million seed investment round, paving the way for broader decentralized finance use cases on the market. developer network.
The private investment cycle has been led by some of the biggest names in blockchain venture capital, including Three Arrows Capital and DeFiance. Polychain Capital, ParaFi Capital, Huobi, Mechanism Capital, Bixin Ventures, IOSG Ventures, Hypersphere Ventures and Fenbushi Capital also participated.
Several companies have also stepped up to support liquidity on dTrade, including Alameda Research, CMS Holdings, MGNR, Kronos and Wintermute.
Alameda Research has invested heavily in Defi this year, allocating $ 20 million to Reef Finance and $ 4 million to Coin98 Finance.
As a decentralized exchange, dTrade allows the trading of perpetual swaps and options with chain settlement. In theory, the platform can accommodate unlimited derivative markets without custody and counterparty risks. The trading platform is not available for traders based in the United States.
“Derivatives are fast becoming the largest decentralized finance market, just as they are the largest traditional finance asset class,” said Nikodem Grzesiak, co-founder of dTrade. “Derivatives are an exciting use case for blockchain. Entirely new perpetual exchanges for blockchain-based assets within Polkadot’s multi-chain architecture can be added through a simple governance proposal. “
The popularity of crypto derivatives has exploded over the past year, with participants seeking additional exposure to the rapidly growing market. CoinMarketCap’s 2020 annual report found that crypto derivatives made up 55% of the total cryptocurrency market last year.
Polkadot’s developer network has also grown rapidly, with 435 projects launched on the platform at the time of publication.