A five-person company dYdX recently raised $10 million from investors. The crypto-based company has developed a new margin trading protocol on the Ethereum network and allows people to create new financial products. These products could be used to short sell, leverage long positions and create interest-generation loans as well. The startup’s protocol ecosystem works without the need for a broker.
Margin lending services are still being offered by brokers in the cryptocurrency industry. The new protocol developed by dYdX erases the need for a trusted intermediary. Therefore, the products developed using the protocol may not demand a broker for starting peer-to-peer lending services.
DYdX founder Antonia Juliano talked to Fortune about his startup’s unique offerings, saying that decentralized finance will be the first real-world application of blockchains. He noted that the beginning of blockchains was via decentralized money, i.e., Bitcoin. It enabled decentralized exchanges to be created like 0x and Kyber.
The project marries the smart-contracts of the Ethereum blockchain with the trade settlement features of decentralized exchanges like 0x. The new derivatives platform will be helpful to traders in hedging risk and speculating during bearish crypto markets.
Juliano explained Expo:
“Basically, Expo abstracts a lot of complications of margin trading away from the user. People don’t have to worry about getting a loan.”
Crypto Startup dYdX Lets You Short Ethereum [ETH], Raises $10 Million was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.
Author: Viraj Shah