Derived Finance Raises $3.3 million for Multi-Chain Synthetics Trading

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Derived Finance, a new multi-chain synthetics trading platform based in India, has successfully completed a funding round that raised over $3.3 million from more than 30 venture funds. 

Led by GSR Ventures, investors included AU21, Poolz, Nabais Capital, Dweb3, Occamfi, and Genblock Capital.

The interest from venture capital firms is indicative of the excitement around DeFi and of Derived particular proposition, which targets both interoperability and synthetics.

Derived Finance says is minimum viable product will land sometime in the fourth quarter of this year.

Multi-chain synthetics tokens explained

As its name suggests, Derived is focused on derived (or synthetic) tokens, which are representative of digital tokens, stocks or other assets.   

Synthetics allow traders of the assets to gain exposure to the underlying asset without having to hold that asset.

Assets with a reliable or easily trackable price can be traded using derived tokens, enabling users to trade both digital and traditional assets with leverage while staying in a fully decentralised blockchain ecosystem.  

Bharat Verma, chief executive of Derived Finance, said in response to the successful funding round:  “We are thankful to all the investors who reposed their faith in us and joined the fundraiser. More than 30 venture funds participated in the funding round, with over $3.3 million raised.”

He added, “Together we will use the synergies to build Derived Finance, which is the next-gen multi chain synthetics trading Platform.”

Built with Polkadot technology

Derived describes itself as a multi-chain synthetics trading platform. The platform leverages the interoperability features of Polkadot so that it is available across major DeFi ecosystems, including Polkadot, Ethereum, Binance Smart Chain, Cardano, and Avalanche.

Uniquely, the Derived platform allows leveraged minting of up to 3x for platform participants. 

Although multi-chain synthetics support will be a key competitive advantage of the platform, staking rewards for traders is another selling point, with the ability to receive rewards while still able to use the staked token to trade on the platform. 

Liquidity staking, which enables staked assets to be traded is not new, the ability to apply this approach in a synthetic multi-chain environments would be innovative.

Hybrid tokens for digital and non-digital assets

Additionally, Derived claims to be the first crypto trading platform to allow users to create and trade Hybrid Tokens. Hybrid tokens act as a means of exchange within DeFi networks are more broadly are used to unlock utility features of decentralised networks. In Derived’s case a single hybrid token can be used to, for example, buy a basket of assets such as ETH, BTC, Tesla, Gold.

Delivering on promise of 0% slippage would be attractive

Derived will include features such as binary options, 0% Slippage Dex with what it says will be unlimited liquidity.

Slippage is the difference between the quoted price – usually set as the mid point between the bid and ask price – and the actual price the order is executed at.

Despite all the benefits of DEXs, slippage is still a problem, so being able to deliver a 0% slippage guarantee would be attractive to traders and investors.

Derived Finance IDO closes 14 October 2021

The initial DEX offering (IDO) will be conducted on 13 and 14 of October 2021 on Poolz, with more information available at the Derived site.

There is a whitelisting and token airdrop competition for early adopters – the whitelisting part has now closed but the airdrop part of the competition is open until 13 October.

Derived says the platform will support major fiat currencies “allowing users to trade in their native currency while being able to trade on global derivatives”.  

About Gary McFarlane PRO INVESTOR

Gary was the production editor for 15 years at highly regarded UK investment magazine Money Observer. He covered subjects as diverse as social trading and fixed income exchange traded funds. Gary initiated coverage of bitcoin and cryptocurrencies at Money Observer and for three years to July 2020 was the cryptocurrency analyst at the UK's No. 2 investment platform Interactive Investor. In that role he provided expert commentary to a diverse number of newspapers, and other media outlets, including the Daily Telegraph, Evening Standard and the Sun. Gary has also written widely on cryptocurrencies for various industry publications, such as Coin Desk and The FinTech Times, City AM, Ethereum World News, and InsideBitcoins. Gary is the winner of Cryptocurrency Writer of the Year in the 2018 ADVFN International Awards.