Ethereum DEX dYdX closes $ 65 million funding round

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Another mega-increase in the crypto space. This time, dYdX is the beneficiary of an eight-figure sum.

DYdX action plans for growth

dYdX has raised $ 65 million in a Series C funding round led by Paradigm, the project ad Tuesday.

Other attendees included former investors Andreessen Horowitz, Polychain Capital, Three Arrows Capital and Wintermute. In a blog post, the exchange said the increase marked a “significant step” that would allow the team to develop a long-term strategy and improve the liquidity of its exchange.

Several strategic investors, including liquidity providers QCP Capital, CMS Holdings, CMT Digital, Finlink Capital, Sixtant, Menai Financial Group, MGNR, Kronos Research, venture capital firms HashKey, Electric Capital, Delphi Digital; and the Ethereum StarkWare scaling solution has also joined the cycle. The increase follows a January Series B round led by Three Arrows Capital and DeFiance Capital, although this one is much smaller at just $ 10 million.

dYdX is a decentralized exchange built on Ethereum. It allows users to trade perpetual swaps, which are a form of forward contract with no expiration date. The exchange was recently launched on Ethereum Layer 2 with StarkWare, and it is the first decentralized platform to offer cross-margin trading (the cross-margins feature allows traders to share collateral between accounts to limit the risk of liquidation).

When announcing the increase, Wintermute Founder and CEO Evgeny Gaevoy said:

“DYdX is the pioneer of Layer 2 DEX trading with its new platform based on the StarkEx scalability engine from StarkWare. It offers decentralization and non-custodial trading of perpetual futures contracts without any of the drawbacks faced by similar solutions on the Ethereum Layer 1.

dYdX has confirmed that it will use the funds to decentralize the protocol, offer new assets and features, launch a mobile app, partner with teams linking CeFi and DeFi, invest in growing markets and hire new people.

Since its launch, dYdX’s Layer 2 protocol has processed $ 2.2 billion in transaction volume. It contains approximately $ 40 million in total locked value.

Disclosure: At the time of writing, the author of this feature owned ETH, ETH2X-FLI, and several other cryptocurrencies.

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