By Michael Scott
The launch of SynFutures’ innovative V3 seeks to strengthen decentralized finance’s derivatives structures and accommodate institutional stakeholders.
SynFutures is a decentralized exchange (DEX) based in Singapore focusing on perpetual futures. Its most recent funding round resulted in it securing a remarkable $22M. This round boosted its total funding to $38M and was headed by Pantera Capital.
SynFutures’ Nets $22M in Funding Round
Additionally, it entailed participants from HashKey Capital and SIG DT Investments, a Susquehanna International Group (SIG DTI) subsidiary. Perpetua futures is a financial derivative mainly utilized in trading commodities and cryptocurrency.
Different from traditional futures contracts that contain a stated maturity date, they lack a specified expiration date.
As such, the ability to trade them with leverage exists, which permits traders to manage a significant position compared to how their initial capital would permit. The fundraising statement coincides with SynFutures’s unveiling of V3. The mainnet unveiling has been planned for the last quarter of this year.
An Oyster automated market maker (Oyster AMM) is incorporated in the improved V3 network and is wholly deployed on-chain.SynFutures says an Oyster AMM merges the orderbook’s and AMM model’s attributes in one approach. This improves capital efficacy and liquidity in decentralized finance (DeFi).
Uniswap is probably the market’s biggest and most famous AMM. Orderbook models are how exchanges match purchase and sell orders.
SynFutures Pushing for Mainstream Adoption of Crypto Assets
It permits permissionless listing of trading pairs, which includes famous crypto assets like Bitcoin, nonfungible tokens (NFTs), stablecoins, indices, and major altcoins.
Created on Polygon, a blockchain platform that prides itself on inexpensive and quick transactions, the protocol guarantees double-sided liquidity. This permits users to offer liquidity using only one token of a trading pair.
Rachel Lin, SynFutures’s co-founder and chief executive officer, told a media outlet that the preparedness of crypto to address mainstem adoption’s problems is based on the capability of decentralized finance to revive and strengthen the derivatives ecosystem.
SynFutures’s V3 is made to prevent decentralized finance from lagging behind TradFi and CeFi, its rivals. Additionally, it aims to ensure DeFi attains its maximum potential, evoking institutional and mainstream adoption opportunities.
Derivatives Trading and Decentralized Finance
SynFutures’s CEO discussed derivatives trading’s role by saying it is a factor behind considerable trading volumes in CeFi and TradFi, mostly significantly overshadowing spot trading. However, the current derivatives infrastructure within decentralized finance would find it difficult to compete with the institutional trading outfits’ arrival.
Lin told a media outlet that despite increased demand for decentralized finance following CEX’s catastrophes in 2022, decentralized finance has yet to close the deep gap separating it from institutional stakeholders who mainly depend on derivatives in their financial plans.
Lin expects the bull market, enhanced by Bitcoin splitting, macroeconomic, and geopolitical factors, to happen in 2024. However, institutions may still experience challenges in wholly embracing decentralized finance owing to the restricted derivatives functionality.
Lin said that if an explosive gush is experienced in the crypto markets, DeFi’s insufficient capital and liquidity efficacy will keep impeding its goals. Therefore, SynFutures is confident the V3 will finally ‘prove to be the niche’s critical moment.’
Editorial credit: Piotr Swat / Shutterstock.com