Decentralized exchange dTrade has raised $22.8 million for a market-making fund designed to provide the ecosystem with higher liquidity, potentially setting the stage for wider DeFi adoption on Polkadot once the DEX launches later this year.
The funds will enable dTrade to launch with “deep liquidity” backed by some of crypto’s largest market makers, the company announced Tuesday. Specifically, the capital will be used to facilitate on-chain loans to market makers that provide order book liquidity on dTrade. Community members will also have the opportunity to participate in the on-chain program once dTrade launches, which is expected soon after Polkadot concludes its parachain auctions later this year.
The capital raise had participation from some of blockchain’s biggest companies, including Alameda Research, CMS, Hypersphere, Polychain and DeFiance.
Market makers facilitate smooth open and exit positions for traders who are buying and selling assets on the open market. Market makers essentially place buy and sell orders for tradeable assets to provide liquidity and