Synthetix nets $20M from Web3 quant trading firm
Synthetix nets $20M from Web3 quant trading firm
Derivatives liquidity protocol Synthetix has just secured a major new partnership, with global quantitative trading firm DWF Labs leading the way in a $20 million investment round.
The news follows a similar investment by Metastable Capital in April, with the venture studio’s victory triggering a peak in value of between $3 and $3.50 per Synthetix token, SNX. The surge was hailed as evidence of the strength of the DeFi ecosystem.
Synthetix allows users to tokenize a wide range of assets and use that tokenized form to trade those assets on a decentralized platform. With the new funding injection, the Synthetix team will look to expand its offering to include the issuance of tokenized assets. This development is fundamental for the growth of the DeFi space, as it will enable the creation of a much wider range of financial instruments that use tokenized assets as a base.
Moreover, the partnership with DWF Labs could help Synthetix to become a more advanced derivatives protocol by taking advantage of DWF’s experience in quantitative trading. DWF Labs has already made investments in several prominent DeFi players and by leveraging their data and know-how, Synthetix looks to further enhance the DeFi space.
The announcement brought a much-needed boost to SNX as its price jumped by 26% on the day.
Synthetix’s reactivity and keenness to seize new opportunities bodes well for the DeFi space. With DWF Labs providing a new layer of backing to the platform, Synthetix’s future is looking very bright.