- Hack VC and Dexterity Capital led the round
- The protocol hopes to be the first on the Terra blockchain to operate an on-chain orderbook with the automated market maker framework
Vertex Protocol, a decentralized FX protocol for multi-currency spot and derivatives trading, has closed an $8.5 million seed funding round ahead of its planned launch this summer.
Hack VC, the $200 million crypto seed fund headed up by Alex Pack and Ed Roman, and Dexterity Capital led the round. Other investors include Jane Street, Hudson River Trading, GSR and Huobi.
“We are excited to partner with some of the top trading firms in the space alongside VC partners with deep knowledge in scaling new protocols,” Alwin Peng, co-founder of Vertex, said. “The capital and expertise provided will help propel our team forward and put Vertex at the forefront of [multi-currency] DeFi innovation.”
Currently, more than 99% of DeFi (decentralized finance) liquidity lies in US dollar-tied stablecoins, a spokesperson from Vertex said. While non-USD stablecoins exist, no viable protocol allows for trade between various fiat-linked tokens, which has hindered adoption and utility, the spokesperson added.
International traders looking to hedge currency risk between USD-denominated DeFi investments and their local currencies currently have few options for liquidity, and the Vertex team is hoping to change that.
“As one of the largest liquidity providers in crypto, we recognize the potential of this protocol to contribute towards a vibrant market for investors worldwide,” Michael Safai, managing partner at Dexterity Capital, said. “We believe these products have a place in many DeFi portfolios, which is why we’re taking an approach to investment that will help ensure liquidity and growth for Vertex far beyond launch.”
Vertex plans to be the first decentralized trading protocol on the Terra blockchain to operate an on-chain orderbook with the automated market maker (AMM) framework. The protocol, once launched, hopes to provide traders with perpetual swap offerings and a borrowing and lending facility with flexible collateral options.
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