Synthetix nets $20M from Web3 quant trading firm

Please fol­low and like us:
Pin Share

Tok­enized asset issuance plat­form Syn­thetix has secured a $20 mil­lion invest­ment through a new part­ner­ship with Web3 invest­ment and quan­ti­ta­tive trad­ing firm DWF Labs.

The mar­ket mak­ing and algo­rith­mic trad­ing com­pa­ny acquired $15 mil­lion worth of Syn­thetix’ native token SNX paid for with USD Coin (USDC) in March 2023. DWF Labs will be tasked with increas­ing SNX token liq­uid­i­ty and mar­ket mak­ing across cen­tral­ized and decen­tral­ized exchanges.

Syn­thetix’ per­pet­u­al futures will be inte­grat­ed into DWF Labs’ trad­ing busi­ness as part of the deal. DWF Labs has also com­mit­ted to pur­chase anoth­er $5 mil­lion worth of SNX tokens once the inte­gra­tion of Syn­thetix’ ser­vices has been completed.

Syn­thetix allows users to tok­enize a vari­ety of real-world assets into deriv­a­tives called Synths, which pro­vide expo­sure to a range of dif­fer­ent assets. Hold­ing SNX tokens allows users to cre­ate Synths by lock­ing tokens into a smart con­tract and mint­ing Synths against the cor­re­spond­ing value. 

Users can trade Synths using Syn­thetix’ pooled col­lat­er­al mod­el, with trades between Synths gen­er­at­ing fees for SNX col­lat­er­al providers.

The cre­ation of on-chain syn­thet­ic assets tracks the val­ue of real-world assets, which includes syn­thet­ic fiat cur­ren­cies or com­modi­ties like Gold and finan­cial instru­ments like equi­ty indices.

DWF Labs man­ag­ing part­ner Andrei Grachev high­light­ed the partnership’s pro­vi­sion of stream­lined trad­ing mech­a­nisms in the Decen­tral­ized Finance (DeFi) space:

“By lever­ag­ing Syn­thetix’s deep liq­uid­i­ty and com­pos­abil­i­ty, plat­forms can now deliv­er bet­ter trades with low­er slip­page, allow­ing for inno­v­a­tive hedg­ing strate­gies and unique use cases.”

Syn­thetix’ V2 plat­form sur­passed $400 mil­lion in per­pet­u­al swap dai­ly trade vol­ume in March 2023 accord­ing to data from Dune Ana­lyt­ics.

Relat­ed: KuCoin leads $10M fund­ing for Chi­nese yuan sta­ble­coin issuer

The deriv­a­tives liq­uid­i­ty pro­to­col saw a surge in dai­ly fees in June 2022 after a col­lab­o­ra­tion with liq­uid­i­ty provider Curve Finance to cre­ate Curve pools for Syn­thet­ic Ether (sETH)/Ether (ETH), Syn­thet­ic Bit­coin (sBTC)/Bitcoin (BTC) and Syn­thet­ic U.S. dol­lar (sUSD)/3CRV.

The part­ner­ship allowed users to con­vert Synths like sETH to ETH seam­less­ly and saw the SNX token val­ue increase by over 100% dur­ing the depths of the pro­longed cryp­tocur­ren­cy bear market.

Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published. Required fields are marked *