dYdX Raises Seed Round Led by Andreessen Horowitz and Polychain Capital
dYdX Hold Successful Seed Round
The CEO of dYdX was very happy about the news of the company’s recent seed round. According to him, this was a big step towards creating the first decentralized derivatives exchange. The seed round was led by Olaf Carlson-Wee of Polychain Capital, and Andreessen Horowitz. Other investors who have remained committed to the course include Brian Armstrong, Fred Ehrsam, Scott Belsky, Kindred Ventures, Abstract Ventures, Elad Gil, and 1 Confirmation, to name but a few. All of them have been great seed and angel investors towards this vision.
The CEO, Antonio Juliano, said that he was grateful to have had the confidence of all the investors. He was also thankful for the support, advice, and experience that they had brought to the table. With their help, he felt that the company was now closer to achieving the goal of transparent, open, and secure financial products with decentralized management.
How the Capital Will Be Used
The first step will be to create a team of world-class experts consisting of engineers, designers, and business owners to make the dream a reality. The company will also conduct an extensive audit to help ensure that the open protocol used by dYdX is secure enough for the trade of derivatives.
Besides that, the funds will be used for the development of a regulatory-compliant approach. This will help in building the first derivate exchange that runs on a decentralized platform.
A Bit More About dYdX
The company was founded in July, and it intends to become the first decentralized exchange for derivatives. This exchange will deal with crypto assets such as Bitcoin and other major crypto coins. dYdX is based on the Ethereum blockchain and Ox. It relies on smart contracts to power the open protocol for the trade of derivatives.
In the normal markets, the derivatives are usually about ten times larger than the spot markets. However, the cryptocoin world currently has almost no derivatives. It is only Bitcoin which has any derivatives today. However, there is hope that this will change. Today, crypto assets have a trading volume of over $35 billion daily. In coming years, this will mean that the crypto derivatives market will be worth many hundreds of billions.
How it Works
On dYdX, anyone will be able to take an option or a short option without placing his or her funds in any central exchange. To test this concept, those behind it have built a trading interface and open protocol that are live on the Kovan Testnet. The platform plans to go live on Ethereum by mid-2018.
The platform is open to anyone; you do not need anything special to qualify. As long as you have an interest in the crypto-coin world, this platform was built for you.
Do you think that a derivatives trading exchange is the way to go for crypto assets? Leave us a comment below.