Decentralized cryptocurrency derivatives exchange dYdX has closed a $65 million Series C funding round. It was led by venture capital firm Paradigm, according to a press release.
Participants in the round also included a16z, Polychain Capital, Three Arrows Capital, Wintermute. Among the new strategic investors are QCP Capital, CMS Holdings, CMT Digital, HashKey, Electric Capital, Delphi Digital, and others.
“Additional capital will allow us to sustain long-term prospects and significantly improve liquidity on the dYdX exchange due to the volatility of cryptocurrency markets,” the statement said.
The fresh funding will be directed toward adding new assets and features to perpetual contracts, launching a mobile app, forming new partnerships, strategic investments in growth markets abroad, and expanding the team.
Earlier, dYdX raised $10 million following a Series B round. It was led by Three Arrows Capital and DeFiance Capital.
In 2020, the DeFi platform launched three perpetual contracts — on Chainlink (LINK), Ethereum and Bitcoin.
In January 2021, the exchange introduced a layer-2 protocol on the Ethereum mainnet for cross-margin perpetual contracts with zero gas costs. In April dYdX announced the launch of the solution.