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Users can trade perpetual swaps and options with on-chain settlement on the Polkadot-centric exchange.
Decentralized exchange dTrade has secured $22.8 million for a market-making fund aimed at increasing liquidity in the ecosystem, potentially paving the way for larger DeFi adoption on Polkadot once the DEX debuts later this year.
According to the business, the money would allow dTrade to debut with “deep liquidity” supported by some of cryptocurrency’s largest market makers. The capital will be utilised specifically to facilitate on-chain loans to market makers who provide order book liquidity on dTrade. Community members will also be able to participate in the on-chain programme once dTrade debuts, which is expected soon after Polkadot’s parachain auctions end later this year.
Some of the most prominent blockchain businesses took part in the capital raise, including Alameda Research, CMS, Hypersphere, Polychain, and DeFiance.
The capital raise had participation from some of blockchain’s biggest companies, including Alameda Research, CMS, Hypersphere, Polychain and DeFiance.
Market makers make it easier for traders to enter and exit positions when buying and selling assets on the open market. Market makers essentially put buy and sell orders for tradeable assets in order to create liquidity and ensure that transactions are carried out at the most competitive pricing feasible.
As previously reported, dTrade raised $6.4 million in a seed round in May of this year to expand DeFi capabilities on the Polkadot network. According to some estimates, the cash acquired in the last two rounds corresponded with a strong surge in derivatives trading, which accounts for the majority of cryptocurrency trades.
The wild price swings in cryptocurrency this year have been mostly attributed to derivatives. According to ByBit data, crypto liquidations reached $2.4 billion in a 24-hour period during Bitcoin’s (BTC) flash drop in May. During the strong bearish trend, over-leveraged traders were expelled from the market, but recent data suggests that open interest in Bitcoin options is increasing again.
The market for crypto derivatives began to take shape in the second quarter of 2020, but it is still in its infancy. Goldman Sachs is the latest high-profile multinational to enter the market after expanding its trading activities to include Ether (ETH) options and futures.