SynFutures, a decentralized perpetual futures exchange, has raised a $22 million Series B funding round led by Pantera Capital.
Other collaborating parties include Susquehanna International Group, HashKey Capital, and others.
The sizable capital injection comes as the crypto market shows early signs of thawing after a brutal “crypto winter” in 2022. An upcoming bitcoin halving in 2024 and a potential pause in Federal Reserve rate hikes have improved sentiment.
SynFutures aims to combine order book and automated market maker (AMM) models to improve decentralized finance (DeFi) trading efficiency.
Its new Oyster AMM concentrates liquidity using limit orders within the AMM structure.
“The name ‘Oyster AMM’ reflects the completely permissionless listing of futures trading pairs on SynFutures DEX, as well as the ‘pearls’ that appear on a liquidity curve with limit orders, as is the case with our model,” said co-founder Rachel Lin.
The funding will support scaling up SynFutures’ perpetual swap exchange along with educational initiatives to expand the adoption of decentralized derivatives.
Pantera Capital’s continued interest reflects optimism around crypto’s long-term growth trajectory, despite recent troubles. The investment firm has backed SynFutures since its $6 million seed round in 2021, seeing promise in its decentralized take on derivatives trading.
On September 29, Pantera CEO spoke on Web3, DeFi, and NFT at Token2049. According to Dan Morehead, new initiatives and use cases may offer higher returns on investment despite Bitcoin and Ethereum dominating the industry.
The CEO added that there is plenty of room to grow given that Defi now has over a $20 billion market valuation compared to teh $3 trillion held by the traditional financial system.