Decentralized exchange dYdX has raised $10 million in Series B round led by Three Arrows Capital and DeFiance Capital, which the team calls “an important milestone.”
While a16z, Polychain Capital, Kindred Ventures, 1confirmation, Elad Gil, Fred Ehrsam continued their support, Wintermute, Hashed, GSR, SCP, Scalar Capital, Spartan Group, and RockTree Capital are the new investors in the DEX platform. Arthur Cheong, founder of DeFiance Capital said,
“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 cryptoassets.”
The funds raised will be used to add new assets and features, partnerships, strategically invest in international growth markets such as Asia, and further expand the team, which recently added six new members across engineering, design, & growth.
The DEX runs on smart contracts on the second-largest network, Ethereum, eliminating the need for a central exchange. The infrastructure of the decentralized exchange combines non-custodial, the on-chain settlement with an off-chain low-latency matching engine to deliver an institutional-grade, liquid, and low slippage trading experience.
The investment came after a “record” 2020 that saw the total cumulative trade volume across the perpetual, margin, and spot trading increasing 40x, reaching $2.5 billion in 2020, up from $63 million in 2019. Also, loan originations registered $17.4+ billion from dYdX lending pools.
In 2021, total cumulative trade volume has surpassed $3.5 billion, with the team preparing to launch Layer 2 solution with StarkWare for cross-margined perpetuals to scale lower cost in February.
Besides these metrics, dYdX users also jumped 4.8x with 38,588 unique wallets depositing funds into the exchange’s smart contracts.
dYdX, however, accounts for only 2.37% of total DEX volume, recording just over $5 million in volume in the last 24 hours. The majority of the DEX volume share is captured by Uniswap at 47.7%, followed by SushiSwap at 21.3%, and Curve and 0x at 11..21% and 9.69%, respectively, as per Dune Analytics.