The on-chain and liquidity and derivative trading protocol — Synthetix recently grabbed the $20 million investment funding from investment firm and market-maker DWF, Digital Wave Finance.
On Thursday, 16 March, DWF initiated buying in Synthetix’s native token SNX, worth around $15 million. Singapore-based Web3 investment firm DFW also committed to buying another $5 million token of SNX, making the total investment worth $20 million.
As part of the deal, Ethereum based- Synthetix plans to integrate their perpetual future product into Digital Wave Finance (DWF) labs’ trading business. This integration is intended to increase trading volume for Synthetix and could potentially benefit both companies’ involvement.
How will the Perpetual Future be Profitable for both?
Perpetual futures are similar to traditional futures contracts but do not have an expiry date like other derivatives. Speculators may be able to make big money on small moves, but there is also an enormous amount of risk involved.
Thus, Synthetix’s perpetual futures influence speculators to trade on DWF Laboratories’ trading business with deep liquidity and lower slippage. This integration will fuel the growth of both firms.
At the time of writing, the fully diluted market capitalization of Ethereum-based Synthetix is $909.2 million. Similarly, SNX, the native token of Synthetix, is currently trading at the $2.95 mark.
Also Read: EOS Network Launches $20M Fund to Support dApps and GameFi Projects on EVM
