- The company is valued at $20 million after the fundraising round.
- With $1.5 million in startup capital, Stream Trading was valued at $20 million.
The nearly lucrative protocol’s goal is to expose depositors to high-yield rate arbitrage trades, for which it levies fees of 10% or more.
The startup creating Stream Finance, one of the newest cryptocurrency derivatives platforms on the Ethereum blockchain, has acquired $1.5 million from a number of angel investors and Polychain.
According to founder Diogenes Casares, Stream Trading raised its seed round at a $20 million value.
To take advantage of this year’s cryptocurrency bull market, which is providing huge returns for trading platforms across decentralized finance (DeFi), he and co-founder Solal Afota swiftly assembled the team.
Exchanges specialising in derivatives are a mainstay of the on-chain scene for token price speculation, drawing significant attention and hundreds of millions of dollars in cryptocurrency deposits from sites like dYdX and Vertex.
In contrast, the whole value of Stream, which was only released from beta testing this week, is capped at $5 million.
However, according to Casares, that’s already nearly enough to make Stream lucrative. The protocol’s purpose is to expose depositors to trades with high yield rates through arbitrage, for which it levies fees of 10% or more.
In the near future, according to Casares, Stream aims to develop into a decentralized perpetuals exchange that takes on dYdX and the other “legacy” brands in the nascent DeFi derivatives market.
According to him, most protocols place an undue emphasis on fee reductions at the expense of funding rates, which traders pay when they speculate on the future value of assets.
“We’re focusing more on the funding rate side than the swap fees side,” he stated.
Moreover, systems engineer Emanuel Adamiak stated that Stream is developing with the extremely popular restaking protocol Eigenlayer in mind.
According to him, EigenLayer cutting edge technology gives us economic security while enabling us to have a reduced node count and faster throughput.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
