Polychain, Pantera Back $14M Funding Round for DeFi Derivatives Platform SynFutures

Decentralized finance (DeFi) derivatives exchange SynFutures raised $14 million in a Series A funding round led by Polychain Capital, SynFutures announced Wednesday. 

As DeFi continues to gain in popularity, investors look to capture niche markets within the industry. SynFutures said it will focus its entire platform on derivatives, which are financial instruments like futures contracts or options. The funding comes fresh on the heels of a $65 million capital raise for fellow DeFi derivatives exchange dYdX.

Singapore-based SynFutures said it wants to eliminate barriers to entry to the derivatives market for smaller investors for different products, including large cryptocurrencies, altcoins, equities, metals and indexes.

Other investors included Framework Ventures, Pantera Capital, Bybit, Wintermute, CMS Holdings, Kronos and IOSG Ventures.

“We’re aiming to level the playing field for the average investor by cultivating a free and open market for derivatives trading,” SynFutures CEO Rachel Lin said in a press release.

Lin said her ultimate goal is to “democratize the futures market,” following a growing sentiment for increased accessibility in the DeFi market.

SynFutures will support a variety of assets, including ERC-20 tokens and cross-chain assets. To avoid price volatility, SynFutures uses a rigid modeling and risk management system to protect users' positions, Lin said. The company hopes to use best practices from traditional finance to add stability to the DeFi sector.

SynFutures is now being used by a limited set of users in a testing phase known as "closed alpha." But the company plans to open the platform to all users next month as a result of the new funding. It also plans to release new products aimed at improving user experience, which include a hash rate derivative and the capabilities for cross margining.

“We look forward to supporting such a strong founding team with extensive experience spanning both traditional finance and blockchain technology, a rarity in the industry, as they bring synthetic derivatives to new users across the globe,” Polychain Capital CEO Olaf Carlson-Wee said in a press release.