Global Web3 venture capital and market maker DWF Labs has pledged an investment of $20 million to spur development in the growing ecosystem of Synthetix, a derivatives liquidity protocol on Ethereum.
DWF Labs has already acquired $15 million worth of Synthetix’s native token SNX, news that tripled its daily trading volume and sent the token up close to 4 percent today. The investment was paid in USDC stablecoin and DWF Labs has also committed to make an additional purchase of $5,000,000 SNX once the integration of Synthetix perpetuals has been completed and trading commences.
As an active investor in the blockchain industry, DWF Labs supports promising projects through buying their tokens for up-front capital without adverse price impact. To date, the quantitative trading firm has secured over 35 venture capital deals with Web3 companies through token investments.
As part of the deal, Synthetix will see DWF Labs integrate its perpetuals into their trading business and become a significant volume driver for the protocol across centralized and decentralized exchanges. This enables DWF Labs to increase capital efficiency and, on the other hand, allows Synthetix to concentrate on project development.
Ethereum-based Synthetix is a decentralized asset insurance protocol that allows users to mint, hold, and trade a wide range of real-world assets by locking tokens into a smart contract. Its blockchain-based derivatives, Synths, cover major asset classes including commodities, fiat currencies, and even stocks. The protocol’s tokenized assets are collateralized through the Synthetix Network Token (SNX) in a decentralized, permissionless, and censorship-resistant method.
According to data from Dune Analytics, Synthetix’ V2 platform has traded more $400 million in perpetual swap daily volume.
Andrei Grachev, Managing Partner of DWF Labs, comments: “We are thrilled to invest in Synthetix, a cutting-edge financial primitive that enables the creation of synthetic assets and unlocks unparalleled opportunities for exposure to real-world assets on the blockchain. By leveraging Synthetix’s deep liquidity and composability, platforms can now deliver better trades with lower slippage, allowing for innovative hedging strategies and unique use cases. With Synthetix perpetual futures already available on various decentralized exchanges, we are confident that our partnership will foster exponential growth and continue to drive the DeFi ecosystem forward.” added Andrei.
DWF Labs is a multi-stage web3 investment firm and ecosystem partner that invests in gamefi, metaverse, infrastructure, protocols, trading, and DeFi, along with token listing and advisory services. The company also provides market making, secondary market investments, and over the counter (OTC) trading services for Web3 companies.
DWF Labs’s Asian regional headquarters is in Singapore and has offices in Dubai, China and Hong Kong. In its market making business, DFW Labs collaborates with top exchanges like Binance, ByBit, KuCoin, OKX, Crypto.com, and Huobi, where it trades more than 800 pairs daily.
