MYX, a crypto derivatives protocol based in Asia, has successfully raised $5 million in a seed round, resulting in a valuation of $50 million. The funding round was led by HongShan, formerly known as Sequoia China, with participation from a number of investors including Consensys, Hack VC, OKX Ventures, Redpoint Ventures, Hashkey Capital, Foresight Ventures, GSR Markets, Leland Ventures, Cypher Capital, Bing Ventures, and Lecca Ventures.
Established earlier in the year by Mark Zhang, a former head of futures products at crypto exchange Huobi, MYX is a decentralized derivative exchange that utilizes a peer-to-pool-to-peer model. The platform employs intelligent rates and exposure hedging mechanisms to ensure protocol stability and provide sustainable high returns, as stated in a July blog post.
CEO of MYX, Mark Zhang, highlighted the challenge of growing awareness and acceptance of decentralized derivative trading by users in the industry. He emphasized that existing products do not meet the trading needs of these users, and with the capital raised from the funding round, the team plans to focus on user education while developing its trading tools.
MYX’s matching pool mechanism engine aims to disrupt the traditional model by exclusively exposing liquidity providers to net open interests under the engine. This approach empowers LPs to focus on managing and mitigating risks, rather than being tied to specific long or short positions or relying on traders’ losses for gains.
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