Synthetix nets $20M from Web3 quant trading firm

Tokenized plus issuance level Synthetix has secured a $20 cardinal concern done a caller concern with Web3 concern and quantitative trading steadfast DWF Labs.

The marketplace making and algorithmic trading institution acquired $15 cardinal worthy of Synthetix’ autochthonal token SNX paid for with USD Coin (USDC) successful March 2023. DWF Labs volition beryllium tasked with expanding SNX token liquidity and marketplace making crossed centralized and decentralized exchanges.

Synthetix’ perpetual futures volition beryllium integrated into DWF Labs’ trading concern arsenic portion of the deal. DWF Labs has besides committed to acquisition different $5 cardinal worthy of SNX tokens erstwhile the integration of Synthetix’ services has been completed.

Synthetix allows users to tokenize a variety of real-world assets into derivatives called Synths, which supply vulnerability to a scope of antithetic assets. Holding SNX tokens allows users to make Synths by locking tokens into a astute declaration and minting Synths against the corresponding value.

Users tin commercialized Synths utilizing Synthetix’ pooled collateral model, with trades betwixt Synths generating fees for SNX collateral providers.

The instauration of on-chain synthetic assets tracks the worth of real-world assets, which includes synthetic fiat currencies oregon commodities similar Gold and fiscal instruments similar equity indices.

DWF Labs managing spouse Andrei Grachev highlighted the partnership’s proviso of streamlined trading mechanisms successful the Decentralized Finance (DeFi) space:

"By leveraging Synthetix's heavy liquidity and composability, platforms tin present present amended trades with little slippage, allowing for innovative hedging strategies and unsocial usage cases.”

Synthetix’ V2 level surpassed $400 cardinal successful perpetual swap regular commercialized measurement successful March 2023 according to information from Dune Analytics.

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The derivatives liquidity protocol saw a surge successful regular fees successful June 2022 aft a collaboration with liquidity supplier Curve Finance to make Curve pools for Synthetic Ether (sETH)/Ether (ETH), Synthetic Bitcoin (sBTC)/Bitcoin (BTC) and Synthetic U.S. dollar (sUSD)/3CRV.

The concern allowed users to person Synths similar sETH to ETH seamlessly and saw the SNX token worth summation by implicit 100% during the depths of the prolonged cryptocurrency carnivore market.