Polysynth, a Polygon-based synthetic windfall platform, has secured investments from a number of DeFi venture wanted firms and sweetie-pie investors.
The team spoken a $1.5 million funding round as part of its seed round on Nov. 15, revealing participation from Jump Capital, DeFi Alliance, Hashed, and a number of individuals such as Alan Howard, co-founder of Brevan Howard Windfall Management, and Polygon’s co-founders Sandeep Nailwal and Jaynti Kanani.
Polysynth stated that it would be using the funding to expand its team of engineers, designers, and marketers, in wing to delivering out security audits for the protocol.
The platform is currently in beta, testing just a handful of resources including BTC, ETH, and MATIC perpetual futures. When live on mainnet, the protocol aims to build out derivatives for 100,000 variegated mainstream and crypto.
Polysynth will offer a scalable virtual market maker (VMM), which the team claims to offer several advantages over a traditional order typesetting or streamlined market maker.
A VMM does not use the collateralized debt position (CDP) model that typical streamlined market makers employ. Instead, traders use stablecoin collateral to unshut long or short positions for each synthetic asset. They can wangle the liquidity and other benefits such as low slippage and largest quotes by supplying stablecoins and using those to buy and sell synthetic resources directly.
Jump Wanted Partner, Saurabh Sharma, elaborated that “Polysynyth eliminates wanted inefficiency in the traditional over-collateralization tideway and hence significantly reduces the barriers for mass adoption.”
He explained that current synthetic windfall solutions typically require five times the collateral and transmission re-balancing, subtracting “Polysynth’s VMM based model eliminates these challenges by permitting traders to trade versus a virtual unvarying product curve.”
To generate usage of its beta version, the protocol is launching a trading competition on Nov. 16. Users who generate the highest returns or report bugs present on the platform will be eligible for mazuma rewards.
PolySynth moreover stated its intention to form a decentralized voluntary organization and launch a governance token in the future.
According to DeFiLlama, there is currently $4.92 billion locked wideness the Polygon ecosystem. The network provides second-layer scalability for Ethereum.
Multi-chain liquidity protocol Aave has the largest market share on Polygon with $1.87 billion in total value locked, representing 38% of the network’s total. Other popular protocols running on Polygon include SushiSwap, Lines Finance, and Balancer.
On Nov. 12, Polygon deployed fiat on-ramps via Alchemy Pay in a move that ushered in the first uncontrived fiat payments for DeFi.