A hedging instrument for decentralized finance (DeFi) has closed a $2.16 million funding spherical, led by Dragonfly Capital, with participation from 1kx, Version One Ventures, DTC Capital, Uncorrelated Ventures and A.Capital.
The funding is for Opyn, which presents crypto-based derivatives, starting with the oToken, which is a permissionless hedging instrument. The firm stories $36 million in buying and selling quantity since launch. Others within the funding spherical embody angel traders Balaji Srinivasan, previously of Coinbase; Robert Leshner, founding father of Compound; and Linda Xie, additionally a Coinbase alum who co-founded Scalar Capital.
Crypto getting down with the danger administration enterprise sounds just like the dying knell of the punk-rock period of the business. On the opposite hand, as tasks like Opyn change into extra sturdy, they are going to create methods for thesis-driven traders to generate income by way of contrarian positions, and that may very well be very punk rock.
With the surge in demand for the COMP token, many customers could have funds that may usually be in money fairly than crypto proper now, which may really feel dangerous for customers. The means to insure their USDC deposits on Compound would possibly now be unusually engaging.
Opyn presents oTokens, that are mainly insurance coverage insurance policies, however with out insurance coverage adjusters. So right here’s how a person would insure their USDC utilizing the product. An oToken would enable them, for a small charge, to recuperate many of the funding’s worth in the event that they turned within the underlying token.
So a person may insure $100 in USDC for $95. The person may unlock the $95 in collateral on their oUSDC token however they must flip in 100 USDC to do it. They can do that at any time with none type of verify or verification.
“Opyn is starting a new chapter in DeFi by unlocking options and offering a new and powerful financial primitive that brings stability to a historically-volatile market,” Tom Schmidt of Dragonfly Capital Partners stated in a press launch.
The firm is working now on v2 of its platform, which can embody many new sorts of choices.
“This release will include margining for capital efficiency, enable options spreads and combinations positions, and create the infrastructure to add governance down the line,” co-founder Alexis Gauba informed CoinDesk. The replace needs to be launched later this 12 months.
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