Synthetix, a derivatives liquidity protocol, and DWF Laboratories officially announce their new cooperation and $20 million investment.
Synthetix, a platform for issuing tokenized assets, has partnered with Web3 Investment KPMG enters the metaverse with $30M investment in Web3 trainingand quantitative trading firm DWF Laboratories to win a $20 million investment.
In March 2023, the market maker and algorithmic trading firm purchased SNX, the native token of Synthetix, for $15 million using USD Coin (USDC).
The burden of improving SNX token liquidity and market making on both controlled and decentralized exchanges will fall to DWF Labs. As part of the agreement, Synthetix’s perpetual futures will be incorporated into DWF Labs’ trading operation.
A further $5 million worth of SNX tokens will be purchased by DWF Labs after the integration of Synthetix’s services is complete. Users can tokenize a selection of real-world assets on Synthetix to create derivatives known as Synths that offer exposure to a variety of different assets.
By locking tokens inside a smart contract and minting Synths against the correct value, holders of SNX tokens can generate Synths. Users can trade Synths utilizing Synthetix’s pooled collateral model, which charges SNX collateral providers for each trade between Synths.
On-chain synthetic asset generation mimics the value of real-world assets, such as financial instruments like equity indexes and synthetic fiat currencies or commodities like gold.
The alliance offers streamlined trading procedures in the Decentralized Finance (DeFi) area, said DWF Labs managing partner Andrei Grachev:
“By leveraging Synthetix’s deep liquidity and composability, platforms can now deliver better trades with lower slippage, allowing for innovative hedging strategies and unique use cases.”
Data from Dune Analytics indicates that in March 2023, the daily transaction volume for perpetual swaps on Synthetix’s V2 platform exceeded $400 million.
The derivatives liquidity protocol saw a surge in daily fees in June 2022 after a collaboration with liquidity provider Curve Finance to create Curve pools for Synthetic Ether (sETH)/Ether (ETH), Synthetic Bitcoin (sBTC)/Bitcoin (BTC) and Synthetic U.S. dollar (sUSD)/3CRV.
At the depths of the protracted cryptocurrency bear market, the SNX token value increased by over 100% thanks to the partnership, which allowed users to convert Synths like sETH to ETH effortlessly.
