Vega, a protocol for creating and trading derivatives in a decentralized network, raised $5 million following a funding round.
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🔥 Vega has raised $5m to continue to build and launch an open and efficient decentralised alternative to the cumbersome and restrictive market infrastructure of today. The round was led by @arringtonXRPcap and @CumberlandSays https://t.co/RlBQ5zOy42
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— Vega Protocol (@vegaprotocol) March 18, 2021
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The main investors were Arrington Capital and Cumberland DRW. Among other participants were Coinbase Ventures, ParaFi Capital, Signum Capital, CMT Digital, CMS Holdings and Stani Kulechov, head of the DeFi project Aave.
The startup’s seed round in October 2019 was led by Pantera Capital.
«Vega will become for derivatives what Uniswap is for spot trading. Any derivative instrument can be launched on the blockchain in a high-performance, capital-efficient environment (the protocol does not require a large initial margin). Just as AMMs spawned a wholly new world of trading, Vega will force a rethink of crypto-derivatives», — said Arrington Capital partner Ninos Manosor.
Vega runs on Proof-of-Stake and offers incentives for liquidity providers. The team is integrating Ethereum, though the platform can operate on other blockchains that support wallets with multisignature and smart contracts. The startup expects integration with Bitcoin, Polkadot and Cosmos. A distinctive feature of Vega is the ordering of transactions within a block, which helps reduce costs.
Founder Barney Mannerings said that later trading of settlement futures and perpetual contracts will begin. In 2022 Vega will launch a system of “smart products” allowing traders to create their own instruments.
Earlier investors and founders of the DeFi derivatives platform Opium Protocol delayed by six months the linear-distribution of governance tokens OPIUM allocated to them.
In March, the cryptocurrency exchange Coinbase allowed New York residents to engage in transactions with a number of DeFi tokens, including Aave, Uniswap and yEarn.Finance.
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