SynFutures Secures $22 Million in Series B Round to Propel DeFi Derivatives Trading

SynFutures Secures $22 Million in Series B Round to Propel DeFi Derivatives Trading

SynFutures, a decentralised crypto derivatives exchange, has successfully closed a $22 million Series B funding round amidst a global downtick in venture investments for crypto-centric projects. The round was led by Pantera Capital, and saw contributions from HashKey Capital and SIG DT Investments, affiliated with the Susquehanna International Group.

Transaction Highlights:

  • Deal Value: Around $22 million.
  • Investor Lead: Pantera Capital, followed by HashKey Capital and SIG DT Investments.
  • Recipient: SynFutures, a budding powerhouse in the decentralized finance (DeFi) derivatives market.

SynFutures Snapshot:

  • Product Rollout: Coinciding with the funding, SynFutures is launching its novel automated market maker (AMM) named Oyster. The AMM technology, a hallmark of the DeFi landscape, utilises algorithmic bots to facilitate smoother crypto asset trading as opposed to conventional order book methods.
  • Market Analogy: SynFutures’ co-founder and CEO, Rachel Lin, likened the platform to Amazon for market makers, where asset listing can be done in a mere 30 seconds, thanks to the smart contract technology underpinning the platform.
  • Aim to Tackle Capital Efficiency: Addressing a major DeFi hurdle, SynFutures plans to enhance capital efficiency by incorporating on-chain orderbook features typical of traditional financial systems, offering a balance of old and new to its users.
  • Target Audience: With a focus on high net-worth individuals and smaller institutions, SynFutures has garnered around 100,000 all-time traders, achieving a remarkable $21 billion in trading volume since October 2021, all managed by a lean team of about 20 individuals.

Decentralisation Demand:

Triggered by shifts in the crypto trading landscape, SynFutures capitalises on the demand for more transparent, decentralised trading avenues. The platform facilitates on-chain transactions with funds secured in self-custodial wallets, promoting a transparent trading environment.

Looking Ahead:

Anticipating a DeFi resurgence in the coming years, Lin foresees a growing role for derivatives in the crypto space. The ambition is to stand toe-to-toe with centralised exchanges and perhaps challenge traditional financial behemoths, a daring vision indeed.

Risk and Regulation:

As DeFi grows, so do concerns surrounding security and regulatory clarity. The inherent vulnerabilities in smart contracts pose risks, while the regulatory framework for DeFi remains ambiguous. However, practices like know-your-customer (KYC) checks for certain pools and permissionless protocols with KYC layers at gateway points, hint at possible pathways towards compliance in this bold new frontier of finance.

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