Wednesday, October 20, 2021

Vega raises $5 million in a seed round to develop a decentralized derivatives market

The Takeaway:

Blockchain startup Vega secured $5 million in a seed funding round led by Pantera Capital. The startup looks to offer traders a platform for non-custodial decentralized margin trading. Vega's protocol design claims to restructure the trillions of dollars per day derivatives markets to run automatically over peer-to-peer networks with investment bank-grade risk management processes.

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Vega, a decentralized trading technology startup, secured $5 million in a seed funding round led by Pantera Capital. The other backers include Ripple’s Xpring, Hashed, NGC Ventures, Gumi Cryptos Capital, Greenfield One, Monday Capital, and RSK Ecosystem Fund.

Paul Veradittakit, Partner at Pantera Capital, praised Vega, saying that the project has the potential to disrupt and transform the financial landscape with decentralized margined products. Vega aims to design and implement a protocol for safe and non-custodial decentralized margin trading. 

Vega’s software promises to eliminate the rent-seeking middlemen endemic for traditional capital markets and enable global access to financial tools. Vega is a layer-2 solution designed to avoid the performance and market fairness problems associated with decentralized markets built on layer-1 blockchains like Ethereum or Bitcoin.

Barney Mannerings, founder and shareholder of Vega Holdings Limited, said, “We support the right to collaborate and trade freely. Privileged institutions and gatekeepers have for too long kept the financial system rigid and rigged in their favor.” 

He further added that it is neither desirable nor necessary for market participants to subject to profiteering, monitoring, and control by those privileged institutes. Over the coming months, the company will share more details about the protocol’s validator and staking model, its market-making incentives, and the APIs that will be available to traders. 

Let us know in comments, what do you think about the blockchain startup and its potential?

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Glenn Harper
Glenn Harper
Glenn has only two interests: Bitcoin and Aviation. After completing his graduation from San Diego State University in 2006, Glenn started working in the airlines and aviation industry. Aviation was his only passion before he came to know about bitcoin in 2012 after which he decided to dedicate 8 hours of his day for aviation and 8 hours for learning and writing about bitcoin and the technology behind it. Glenn lives with his wife and a 7-year-old son who mines ethereum on his computer and is also quite passionate about cryptocurrencies.

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