Vega has completed 5 million US dollars in financing, which will further support the popularization of derivatives transactions and build a market missing in traditional finance.
Written by: Vega
Vega, a decentralized derivatives trading agreement, raised US$5 million in financing from VC institutions and traditional trading platforms. Investment institutions include Arrington Capital, Coinbase Ventures, and Cumberland DRW.
This round of financing led by Arrington Capital and Cumberland DRW will support Vega’s mission to promote the popularization of the derivatives market, enabling anyone to create and launch the derivatives market, and at the same time solve some of the problems that plague decentralized systems and hinder their widespread development And challenges. By eliminating centralized “gatekeepers”, Vega can achieve instant settlement (less than 1 second), eliminate conflicts of interest in the market, reduce transaction costs, and achieve the throughput necessary for bulk derivatives exchanges (up to 10,000 TPS).
Other participating institutions include ParaFi Capital, Signum Capital, CMT Digital, SevenX Ventures, CMS Holdings, 3Commas, GSR and ZeePrime Capital. Hashed, Eden Block, Greenfield One, KR1, gumi Cryptos Capital and Monday Capital participated in the investment. These institutions have participated in the seed round of investment led by Pantera Capital completed by Vega in October 2019. DeFi Alliance, Aave CEO and founder Stani Kulechov, Enzyme Finance founder Mona ElIsa, Terraform Labs (TFL) co-founder and CEO Do Kwon, and Kyber Network CEO and co-founder Loi Luu also participated in this round of investment.
Arrington Capital, founded by TechCrunch founder Michael Arrington, believes that Vega is one of the most advanced protocols in the DeFi world. Arrington Capital partner Ninos Mansor said: “Vega’s position in the derivatives market will be equivalent to Uniswap’s position in the spot market. Vega allows any derivative product to be launched on the chain in a high-performance and capital-efficient environment. Just as AMM gave birth to a new world of trading, we believe that Vega will unlock new collateral and restructure the derivatives market from the ground up.”
Cumberland DRW began operations in 2014 and has now become one of the oldest and largest liquidity providers in the crypto field. As a major investor in Vega, it brings its deep expertise in traditional capital markets to this field. Brian Melville, Head of Cumberland DRW Strategy, said: “After observing the complex market structure problems faced by investors today, we are very happy to support Vega in providing innovative solutions. We firmly believe that technology can make the market more efficient and more efficient. Popularity and more transparency-all these issues have become the focus of many conversations today, and they deserve widespread attention.”
Barney Mannerings, founder of Vega, said: “By allowing anyone to create and launch a derivatives market, we aim to provide people with the tools they need to hedge the risks of their region, occupation, and other circumstances. Derivatives trading It is one of the pillars of traditional finance, but decentralized finance has been unable to achieve capital efficiency and required throughput for a long time, and failed to make decentralized derivatives trading a viable reality. We are very grateful for our contribution to this round of financing Everyone, because this financing is essential to ensure that Vega continues to move towards the launch of the mainnet and become the first institutional-level derivatives transaction agreement.”
The Vega protocol brings together more than two years of engineering development and first-hand academic research on derivatives on the chain. In addition to building a customized blockchain that focuses on high-performance and scalable transactions, Vega has also brought innovations in a series of areas, including on-chain anti-preemption transactions, liquidity incentives, active and passive market making, and centralized price limit orders Polarization of CLOB and AMM, as well as on-chain circuit breakers and decentralized risk management.
Vega was in the second quarter of 2020 to launch a test network , which were followed by a number of iterations. The Vega team also launched a market and liquidity project at the same time in June 2020, and eight founding members joined to become the first institutions to adopt the agreement. The upcoming Flamenco Tavern version will add liquidity mining on the testnet, which is characterized by the organic integration of active and passive liquidity provision.
Vega is currently committed to moving towards the launch of the main network, and plans to launch cross-chain collateral for self-custodial assets to build a trustless bridge for the Ethereum ecosystem. Vega will continue to expand to other blockchains in the future, including Bitcoin, Polkadot and Cosmos, to advance Vega’s mission to democratize derivatives infrastructure.
Vega is a capital-efficient, decentralized derivatives trading protocol that has become a bridge between traditional finance and DeFi. By eliminating centralized gatekeepers, Vega can achieve high throughput, instant settlement, and low-cost transactions. Vega enables anyone to create a new market to meet the needs of small and medium enterprises and traders around the world, thereby increasing the opportunities for risk hedging and wealth creation.
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