dYdX closes $65M Series C
The San Francisco based DeFi exchange dYdX raised $65M in direct funding in The Series C round led by investment firm Paradigm.
The exchange welcomed new top notch essential investors. This is confirmation enough that investors are looking forward to a further expansion of the DeFi ecosystem.
Crypto Venture Capitals like Delphi Digital, Haskey, Electric Capital also took part in The Series C. dYdX received direct support from 8 liquidity providers, namely; Kronos Research, QCP Capital, MGNR, CMS Holdings, Sixtant, Finlink Capital, CMT Digital, Menai Financial Group. dYdX also welcomed its partner StarkWare.
The exchange while announcing this news, also thanked its past investors on its official platform, including Polychain Capital, a16z, Wintermute, Three Arrows Capital, and many others who took part.
Not only is it a very important milestone for the team, but it also permits them to preserve a long-term focus and remarkably improve liquidity on the exchange via fluctuations of the crypto markets.
Evgeny Gaevoy, Wintermute’s CEO stated that dYdX set the ball rolling in layer-two DEX solutions. He further added that the exchange offers decentralization and non-custodial trading of perpetual futures sans any of the downsides that similar solutions constructed on layer-1 Ethereum go through. Perpetual futures are future contracts without any maturity and are cash-settled. They can be held indefinitely, unlike regular futures.
The exchange confirmed that the additional capital will be used to:
- Decentralize the protocol
- Rapidly build on new assets and characteristics to the perpetuals contracts
- Launch a mobile application
- Partner with infrastructure players bridging the gap between centralized and decentralized finance
- Strategically invest in global growth markets like Asia
- Keep on hiring world-class designers, engineers and business operators
The progress of dYdX indicates the wide expansion of decentralized finance amidst the 2020–2021 bull market. In the last 5 months, the exchange’s Layer 2 perpetual protocol has generated around $2.2 billion in trade volumes from around 11,000 unique traders. From over 13,000 unique addresses, it also received $40 million in Total Value Locked. The protocol has launched 15 markets, with even more to come in the near future.
