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DWF Labs Injects $20 Million Into Derivatives Platform, Synthetix

DWF Labs has invested $20 million in Synthetix, a derivatives liquidity protocol, as part of a strategic partnership. After securing the funding, Synthetix will now begin trading its perpetuals through DWF Labs. The Synthetix Treasury Council reports that on March 16, DWF Labs bought $15 million worth of SNX, Synthetix’s native token, and will buy another $5 million worth in the coming days. 

Understanding Synthetix and why it is attractive

First introduced in 2018, Synthetix is an Ethereum-based decentralized protocol for issuing synthetic assets. Users on the platform are able to convert many different types of real-world assets into synthetic instruments (or “Synths”). In return, these instruments provide them exposure to many different asset classes. By employing a pooled collateral mechanism, users of Synthetix are able to trade Synths. Synths can be created by users who possess SNX tokens, which are locked under smart contracts and minted against the value of the tokens.

This investment by DWF Labs follows the company’s recent $10 million purchase of the native token ORBS from blockchain infrastructure provider Orbs Network. The company provides excellent market-making services to customers all over the world from its offices in the world’s most important financial centers. Synthetix hopes to strengthen its position in the market and reach a larger audience by collaborating with DWF Laboratories. And it’s strong proof that people are starting to trust blockchain-based platforms and decentralized financial systems.

DWF Labs is sure that the relationship will support exponential growth and continue to drive the DeFi ecosystem ahead, as Synthetix perpetual futures are already available on numerous decentralized exchanges. Platforms may now provide more sophisticated hedging strategies and one-of-a-kind use cases by employing Synthetix’s extensive liquidity and composability. Anyone interested in blockchain technology, the future of finance, or just the current trends in the Synthetix ecosystem is likely to find this attractive.