Decentralized exchange, dYdX announced yesterday that it has raised $10 million in a Series B funding round led by Three Arrows Capital and DeFiance Capital. The recent announcement came after DeFi tokens reported significant growth in 2021.
According to the official announcement, several new investors also participated in the latest funding round including Wintermute, Hashed, GSR, SCP, Scalar Capital, Spartan Group and RockTree Capital.
The DeFi platform reported a substantial increase in Perpetual, Margin and Spot trading volume in 2020. Unique wallets depositing funds into the smart contracts of dYdX jumped from 8,000 to 38,588 last year.
Commenting on the latest funding round, Arthur Cheong, Founder of DeFiance Capital said: “Antonio and the team have built a solid foundation for dYdX as one of the earliest and most successful DeFi protocols. We have been users since the early days and are excited to back dYdX in the current round to accelerate its mission to build the most powerful decentralized trading platform for crypto-assets.”
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The exchange reported that the total cumulative trade volume has already jumped above $3.5 billion since the start of 2021. Following the growth, dYdX is planning to launch its Layer 2 solution with StarkWare for cross-margined perpetual to scale lower cost decentralized trading.
The company outlined the use of blockchain technology in perpetual trading. The trading platform recorded a $563 million perpetual trade volume since the launch of the new DeFi protocol in April 2020.
“Perpetual trading is an exciting use case for blockchain technology and we’re thrilled to be building a core component of the decentralized financial ecosystem. dYdX’s decentralized exchange infrastructure combines non-custodial, the on-chain settlement with an off-chain low-latency matching engine with order books to deliver an institutional-grade, liquid and low slippage trading experience for the decentralized finance world,” the official announcement states.
Top DeFi tokens including Chainlink (LINK), Uniswap (UNI), Aave (AAVE), and Synthetix (SNX) reported double-digit gains since the start of 2021.