Decentralized Derivatives Exchange dYdX Raises $65 Million in Series C Round

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by Bhushan Akolkar · 3 min read
Decentralized Derivatives Exchange dYdX Raises $65 Million in Series C Round
Photo: dYdX

The latest fundraise will help dYdX steer ahead its goals of platform improvement as well as solve matters related to liquidity provision on the exchange. dYdX is also looking to add more assets and launch a mobile app in the near future.

In a major announcement coming on Tuesday, June 14, decentralized derivatives exchange dYdX secured 465 million in a Series C funding round led by Paradigm. This comes atop the $10 million fundraise earlier this year in January 2021.

Besides, the test funding round has some of the new strategic investors willing to get a piece of the pie. Some of these include CMS Holdings, QCP Capital, Finlink Capital, Kronos Research, Electric Capital, and others. Some of the already existing investors in dYdX include big names such as Andreessen Horowitz, Polychain Capital, Three Arrows Capital, etc. Speaking to The Block, Antonio Juliano, founder of dYdX said:

“It is a raise that’s coming pretty soon after the previous one. The reason for this is we just see a huge opportunity in crypto derivatives and especially the way that decentralized derivatives can play into the market. Really our goal for dYdX is to make it one of the biggest crypto exchanges period, but on a three to five-year time horizon.”

The San Francisco-based protocol development dYdX majorly focuses on decentralized perpetual swaps. The new capital infusion will allow the decentralized exchange to attain its long-term goals. Additionally, it will also help in improving the liquidity on the platform.

Funds Raised in Series C Round to Be Used for dYdX Expansion

The decentralized dYdX exchange bridges the non-custodial, on-chain settlement with the off-chain low-latency matching via order books. The platform thus delivers an institutional-grade trading experience with low slippage in the DeFi world.

The dYdX exchange looks to further enhance this experience by adding new assets and features to the existing perpetual contracts. Moreover, with this new capital, dYdX will be launching its own mobile app and continue with global expansion. “Our goal really is to get to a point where we’re only publishing open-source code and all of dYdX is run natively on the blockchain, and the blockchain is available to more people in more places in the world,” said Juliano.

Earlier this year in February, dYdX entered a partnership with StarkWare for launching a Layer-2 cross-margin perpetual. This provided a major boost for non-custodial trading at scale. “We’re doing about $40 to $50 million in volume every day on layer two” perpetual swaps said, Juliano. The Layer-2 implementation also helped to significantly lower user costs by skirting the high Ethereum transaction fee.

The latest funding will help dYdX to attain its long-term goal of becoming the largest global exchange catering to crypto derivatives.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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