The company will try to add more tokens that don’t usually have markets for trading derivatives contracts to its platform.
Synquote, a company that makes a platform for trading derivatives contracts in tokens that don’t usually have such markets, just closed a $2.8 million seed funding round.
The round was led by Initialized Capital.
Synquote, which calls itself a “decentralized exchange” (DEX), wants to let people buy and sell options in more than 500 instruments that aren’t usually very liquid on top of layer2 Polygon, Avalanche, and BNB Chain. It opens up liquidity by letting traders get options quotes directly from market makers. This is a first in decentralized finance, says Imran Khan, whose startup accelerator AllianceDAO helped Synquote get started and is also investing in this round.
In an interview with a news correspondence, Ahmed Attia, the founder of Synquote, said that options are hard because of how they are built. “On one side of the trade, you need smart people.”
Attia, an experienced DEX developer, began working on Synquote’s market maker matching model in 2021. He wants to use the money to hire more people, especially people who used to trade options.
A look at Synquote’s documentation shows that the platform will try to help newcomers trade options in the European style. Users can call or put across five tokens: ETH, BTC, AVAX, LINK, and MATIC.
Attia said that the bear market is a “great time” for traders to start playing with options, which can help them protect themselves against losses.
Coinbase Ventures, CMT Digital, Polygon, and Messari’s Ryan Selkis all took part in the round.
