Like a jail tattoo, March 12 2020 is branded into each crypto dealer’s thoughts. No person can overlook the phobia of that fated candle. No dealer will ever escape the disbelief of watching a derivatives market that developed over years break inside minutes.
Crypto desperately wants credibly impartial derivatives. A yr from this PTSD-inducing second of market historical past and never a lot has modified. Put apart the truth that we nonetheless don’t know what occurred on that day — nearly all of derivatives quantity continues to be executed off-chain within the opaque land of the centralized alternate.
The market wants decentralized derivatives that may match the centralized expertise, a spot the place merchants can tackle leverage, transfer capital effectively and hedge danger with out worrying about one thing breaking or somebody squeezing them behind a curtain.
We’re thrilled to announce our funding into Vega Protocol, which we imagine will likely be crucial participant on this rising world of decentralized derivatives. We’re excited to co-lead the spherical with Cumberland DRW, one in all our closest buying and selling companions. The spherical brings collectively a powerful group of buying and selling corporations and DeFi buyers together with ParaFi Capital, Coinbase Ventures, CMT Digital, Signum Capital, DeFi Alliance, CMS Holdings, Three Commas, SevenX Ventures, GSR, ZeePrime Capital and extra.
Vega marries the ingenuity of DeFi with the hard-won knowledge of order books. It unites the AMM with the CLOB, breaking the dichotomy between energetic and passive liquidity. In Vega, market makers are owner-operators, incentivized to seed markets; whereas passive LPs present liquidity to their methods. The staff enhances this novel financial design with a heavy give attention to danger administration and capital effectivity, pioneering options to challenges like frontrunning, multi-chain collateral and scalability.
We’re stoked to get behind a staff of world-class entrepreneurs, engineers, teachers and merchants and can publish extra on our funding within the coming months.
Towards the Wild West Internet!
The Block: https://www.theblockcrypto.com/linked/98742/defi-derivatives-protocol-vega-5-million-coinbase-ventures-others