dYdX, an Ethereum-based decentralized exchange, has raised a Series C worth $65 million. Paradigm has led the investment round, with several others participating: a16z, Polychain Capital, and Three Arrows Capital.
The Series C is a significant dollar increase from dYdX’s previous investment rounds, which were both worth $10 million. It’s a big boost in capital for a startup that is vying to attract users, deploy new features, and distinguish itself in an increasingly crowded field.
After dYdX’s layer 2 protocol release or “cross-margined” perpetual trading, the company decided to collect further capital. The new update enables cross-margin traders to share their margin collateral across accounts, reducing the chance an individual trade defaults but also exposing the entirety of the user’s capital to possible liquidation.