Crypto-Derivatives

Myx, a crypto derivatives protocol, achieves a $5M seed round milestone in funding

In a significant milestone for Asia-based crypto derivatives protocol MYX, a $5 million seed round at a valuation of $50 million has been successfully concluded. HongShan (formerly Sequoia China) spearheaded the funding round, joined by prominent investors like Consensys, Hack VC, OKX Ventures, Redpoint Ventures, Hashkey Capital, Foresight Ventures, GSR Markets, Leland Ventures, Cypher Capital, Bing Ventures, and Lecca Ventures.

Established earlier this year by Mark Zhang, the former head of futures products at crypto exchange Huobi, MYX operates as a decentralized derivative exchange utilizing a peer-to-pool-to-peer model. The protocol employs intelligent rates and exposure hedging mechanisms to ensure stability and deliver sustainable high returns, as outlined in a July blog post.

Mark Zhang, serving as CEO, acknowledged the industry's challenge in cultivating awareness and acceptance of decentralized derivative trading among users. He highlighted the existing products falling short of meeting user trading needs as a significant reason. With the freshly acquired capital, the team aims to address this challenge through user education initiatives and tool development.

MYX's statement emphasized its matching pool mechanism engine's disruptive impact on the traditional model. In this model, liquidity providers are exclusively exposed to net open interests under the engine, allowing them to focus on adeptly managing and mitigating risks. This approach liberates liquidity providers from being tied to specific long or short positions or relying on traders' losses for gains.

The successful seed round marks a pivotal moment for MYX, providing both validation of its model and the resources needed to enhance user education, develop trading tools, and further establish itself as a key player in the crypto derivatives space. The involvement of industry heavyweights in the funding round underlines the growing recognition and support for innovative approaches to decentralized finance in the rapidly evolving crypto landscape.

MYX's commitment to refining its platform, coupled with the financial backing garnered in this seed round, positions the protocol to navigate the challenges of the crypto derivatives market. As decentralized finance continues to shape the future of the financial landscape, MYX's disruptive model and strategic funding underscore its potential to contribute significantly to the evolving narrative of crypto and blockchain technology.