Derivatives Liquidity Protocol Synthetix secures $20M investment from quantitative trading firm in new partnership with DWF Labs.
Tokenized asset issuance platform Synthetix has secured a $20 million investment through a new partnership with DWF Labs, Web3’s investment and quantitative trading firm.
The market-making and algorithmic trading firm acquired Synthetix’s native token, the Synthetix Network Token, for his $15 million.
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March 2023. DWF Labs is tasked with increasing the liquidity and market making of the SNX token across centralized and decentralized exchanges.
Synthetix perpetual futures will be integrated into DWF Labs’ trading business as part of the transaction. DWF Labs has also promised he will purchase SNX for an additional $5 million once Synthetix’s service integration is complete. Synthetix allows you to transform a wide variety of real-world assets into derivatives called synths. Synths offer exposure to a wide variety of assets. Holding SNX allows users to create synths by locking their tokens into smart contracts and synthing against the appropriate values.
Users can trade synths using Synthetix’s pooled collateral model. Transactions between synths incur a fee to the SNX collateral provider.
Synthetic fiat currencies or commodities like gold, as well as financial instruments like equities indices, are created on-chain to track the value of real-world assets.
In the area of decentralized finance, the cooperation offers streamlined trading procedures, according to DWF Labs managing partner Andrei Grachev:
Platforms may now deliver better trades with less slippage because to Synthetix’s deep liquidity and composability, enabling creative hedging techniques and special use cases.
Data from Dune Analytics indicates that in March 2023, the daily transaction volume for perpetual swaps on Synthetix’s v2 platform exceeded $400 million.
After collaborating with liquidity provider Curve Finance to establish Curve pools for Synthetic Ether (sETH)/Ether (ETH), Synthetic Bitcoin (sBTC)/Bitcoin, the derivatives liquidity protocol experienced an increase in daily fees in June 2022.
(BTC) and the sUSD/3CRV synthetic U.S. dollar.
Users could change synthetic currency, such as sETH, to ether through the partnership.
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during the depths of the protracted cryptocurrency bear market, the value of the SNX token increased by almost 100%.
