The first parachains are expected to be launched on the popular Polkadot blockchain by the end of this year.
In preparation for the occasion, dTrade, a decentralized derivatives exchange that will be hosted on the Moonbeam Polkadot parachain, has raised a $ 22.3 million market fund to provide ample depth of liquidity at launch. The Market Maker Fund has been accumulated by investments from well-known companies such as Alameda, Polychain, DeFiance, CMS, Hypersphere, Divergence and Altonomy. DTrade also received support last month from companies such as Cumberland DRW and DeFi Alliance.
The Decentralized Exchange (DEX), which raised an initial round of $ 6.4 million back in May this year, has set up a chain program to collect collaterals that go directly to the accounts of market makers – firms that place as orders for buying and selling certain tradable assets; and pocket spreads to provide liquidity on the exchange ledgers.
Investors receive interest in the form of a governance token, dTrade co-founder Rabiel Jawid explained.
“We are still deciding which of these investors will be the main market maker on dTrade,” Jawide said in an interview. “Initially, it will be two to three of them. But we cannot name them until the legal agreements are signed.”
Solving the chicken-and-egg problem of bringing enough deep liquidity to the exchange is a challenge, Jawide said, adding that crypto pairs like BTC or DOT, a native asset on Polkadot, require around $ 600,000 for transactions to flow properly and efficiently.
The official launch of dTrade is expected shortly after the conclusion of the Polkadot parachain auction for Moonbeam, a ramp for building Polkadot apps using Ethereum compatible smart contracts.
“Our final audit is scheduled for the end of the second week of October and we will be ready to go,” Jawid said. “I guess it’s also pretty closely related to the parachain auctions, although I’m not entirely sure.”