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Futureswap exchange launches new version

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Futureswap exchange has launched perpetual swaps in test mode based on the Arbitrum Layer-2 scaling solution (L2).

Derivatives on Futureswap allow traders to open long and short positions without expiration dates with leverage up to 30x. Because perpetual swaps, unlike futures contracts, do not have an expiry date, they use a funding rates mechanism to balance short and long positions. When the price of a perpetual swap exceeds the index price, longs pay a fee to shorts in order to encourage short sellers to enter the market or reduce the incentive to remain long (and vice-versa).

Initially, the platform started working on the basis of Ethereum. The developers announced that the new version of Futureswap exchange (V4) based on L2 will be launched this week.

Series A funding round

According to L2Beat, Arbitrum holds the leadership in Total Value Locked (TVL) among L2 projects.

Since its launch in April 2020, Futureswap’s accumulated turnover has reached $4.2 billion.

Previously, Futureswap has attracted $12 million in investments from Ribbit Capital, Framework Ventures, True Ventures and Placeholder following the results of the Series A funding round. The Block reported this.

The total amount of funds

In addition, in the previous two rounds, the project received a total of $1.6 million. Moreover, now the total amount of funds raised by Futureswap is $13.6 million.

Recall that in September, the derivatives exchange dTrade based on Polkadot attracted $22.8 million from Polychain Capital, Alameda and other investors. The platform uses the raised funds for lending to market makers (MM). The latter are responsible for ensuring the liquidity of exchange order books.

Earlier, the CEO and founder of the FTX platform, Sam Bankman-Fried, called cryptocurrencies “misunderstood” tools. In his opinion, these financial products play an important role in increasing the liquidity and efficiency of digital asset markets.

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