Vega, a protocol for creating and trading derivatives on the decentralized network, raised $ 5 million in a round of funding.
Vega has raised $ 5m to continue to build and launch an open and efficient decentralized alternative to the cumbersome and restrictive market infrastructure of today. The round was led by @arringtonXRPcap and @CumberlandSays https://t.co/RlBQ5zOy42
– Vega Protocol (@vegaprotocol) March 18, 2021
The main investors were Arrington Capital and Cumberland DRW. Other participants include Coinbase Ventures, ParaFi Capital, Signum Capital, CMT Digital, CMS Holdings, and Stani Kulechov, head of the Aave DeFi project.
The seed round in October 2019 of the startup was led by Pantera Capital.
“Vega will be for derivatives what Uniswap is for spot trading. Any derivative can be run on the blockchain in a high performance and capital efficient environment [the protocol does not need a large initial margin]. Just as AMM spawned a whole new world of trading, Vega will force a rethink of crypto derivatives , ” said Ninos Manosor, partner at Arrington Capital.
Vega runs on Proof-of-Stake and offers incentives for liquidity providers. The team is integrating Ethereum, although the platform can run on other blockchains that support multi-signature wallets and smart contracts. The startup expects integration with Bitcoin, Polkadot and Cosmos. A distinctive feature of Vega is the ordering of transactions in a block, which makes them cheaper.
The founder of the project, Barney Mannerings, said that trading in settlement futures and perpetual contracts will begin later. In 2022, Vega will launch a smart product system that allows traders to create their own tools.
Recall that early investors and creators of the Opium Protocol DeFi-based cryptocurrency derivatives platform postponed the linear distribution of the OPIUM management tokens intended for them for six months.
In March, cryptocurrency exchange Coinbase allowed New Yorkers to trade with a number of DeFi tokens , including Aave, Uniswap, and yEarn.Finance.