By George Ward
The blockchain firm Proximity Labs and three decentralized finance (DeFi) platforms have unveiled a developer fund for trading on the Near Protocol.
Boosting Decentralized Trading on Near
Along with Orderly Network, Spin, and Tonic, Proximity Labs has announced that they have raised $10 million in developer funds. The funds will enhance DeFi transactions in the Near ecosystem.
Also, the funds aim to provide grants and support to developers who intend to host their project on all DeFi trading entities utilizing digital order books.
Furthermore, the three projects offer a real-time experience to users similar to that of centralized exchanges (CEXs), leveraging the Near blockchain protocol as their settlement layer. Other new projects can tap into these platforms and use the liquidity provided for their operations.
At the start of the year, the protocols raised some funds, which they deployed on the Near network. In June, The Orderly Network raised $20 million.
Spin, which operates a perpetual trading system on Near, contributed $3.5 million in February. Meanwhile, Tonic deposited $5 million in April before its launch.
According to Proximity Labs, the $10 million will originate from the coffers of the four partners. Aside from its contribution to grants and investments, Proximity Labs will offer consultation services and support to developers.
A director at the firm, Kendall Cole, noted that the fund aims to expand decentralized transactions on the Near ecosystem further after the FTX crash sparked concerns about CEXs.
Cole stated, “Proximity is committed to a robust and highly efficient DEX economy triggered by the collapse of the crypto exchange giant and the accompanying shocks to the industry.”
In light of the events, the $10 million fund will drive innovative enterprises to build on the Near Protocol.”
Consolidating Crypto Regulation
As the crypto industry and regulatory bodies continue to scrutinize the chaos of FTX collapse, experts believe that the recent happening has significantly brought down the reputation of the digital asset ecosystem.
There is currently a sharp drop in trust amid the burning question of whether the asset class is not the acclaimed “future of money” as people once imagined it. This is a painful setback for the retail segment of the crypto market.
Still, most are convinced that blockchain technology and cryptocurrency will eventually diffuse the traditional capital market from an institutional point of view.
However, what is now needed is for the industry to get its act together, even in the absence of regulations. Thus, it can rebuild people’s trust following the latest crisis.
Even though regulations are unlikely to have wholly prevented such a monumental setback for the industry, robust laws would be an excellent win for the digital asset industry.
Europe and the United States are showing encouraging signs of coming to terms with the need for a practical regulatory framework for the crypto market. But, like all new inventions, it is only a matter of time before the crypto industry experiences the once-elusive stability it craves.