dYdX exchange raises $65M in Series C funding round

Venture firms across the blockchain industry have thrown their weight behind decentralized exchange developer dYdX, offering further evidence that investors are looking to expand the decentralized finance (DeFi) ecosystem.

dYdX exchange raises $65M in Series C funding round

dYdX Exchange generated $65 million via direct funding in the Series C round, with venture fund Paradigm leading the raise. HaskKey, Electric Capital, Delphi Digital, and others also participated in the raise.

The exchange also received direct support from several liquidity providers including Kronos Research, MGNR, Menai Financial Group, QCP Capital, CMS Holdings, CMT Digital, Sixtant, and Finlink Capital. Previously they had Polychain Capital, Three Arrows Capital, and Wintermute, as investors among others.

Wintermute CEO Evgeny Gaevoy described dYdX as a pioneer in layer-two DEX solutions. “It offers decentralization and non-custodial trading of perpetual futures without any of the drawbacks that similar solutions built on layer-1 Ethereum face,” he said.

Exchange’s growth reflects the broad expansion of decentralized finance (DeFi) during the 2020–2021 bull market. Over the past five months, the company has generated over $2.2 billion in trade volumes from over 11,000 unique traders. Its total value locked (TVL) reached $40 million across more than 13,000 unique addresses.

Read: World Economic Forum releases policy toolkit for DeFi regulations 

The DeFi market has been through a massive expansion during recent months due to the ongoing selling pressure faced by Bitcoin and other cryptocurrencies. Data from the leading DeFi aggregator shows that the DeFi market peaked in mid-May before undergoing a broad correction. 

According to DeFiLlama, The total value locked (TVL) in the DeFi ecosystem is now $128 billion, which is around 20% below last month’s peak.