VC Funds are Racing to Fund Decentralized Derivative Platforms

As the DeFi narrative continues to dominate crypto discourse and token prices continue to surge, venture capital funds are actively looking to fund projects working on building decentralized derivative platforms. Much of the activity in DeFi has been on more plain vanilla lending and exchange platforms, however, these projects are looking to create more exotic products to replicate the success of derivative exchanges such as BitMex. Over the past two weeks alone, there have been five funding rounds for these types of projects bringing the total to eight over the last year.

This funding comes from some of the largest and most active funds in crypto including Polychain, Pantera, FBG, Dragonfly Capital, and more. Most of these projects are yet to launch while others like Opyn are starting to gain traction having traded over $50 million in notional volume. Futureswap launched its alpha a few months ago but closed it early due to interest exceeding the team's expectations.

Another sign of the increased interest towards decentralized derivatives can be seen in the token price of the few projects actively trading. FinNexus and Auctus (not listed above) have seen 30-day returns of 300% and 200%, respectively. As more of these projects launch tokens, it wouldn't be surprising to see other investors looking to get similar exposure as these "blue-chip" VCs either by participating in liquidity mining programs or outright purchasing these tokens once they're available.

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