Binance Smart Chain’s recently created billion-dollar growth fund has chosen to invest in the derivatives market.
Binance Smart Chain Makes Derivatives Investment
The recently created $1 billion growth fund from Binance Smart Chain has invested in MCDEX, a decentralized derivatives exchange. MCDEX is the first decentralized perpetual swap available on BSC, helping it to become a major emerging player on the network.
The influx of additional funding from Binance Smart Chain could prove the catalyst that pushes MCDEX to even greater heights.
“MCDEX has posted tremendous growth since its inception, under the $1B fund we’re looking to support such projects that are capable of scaling for the upcoming wave of mass adoption,” said Alex Odagiu, the Investment Manager of the BSC Accelerator Fund in a press release dated October 21st. “With this funding, we hope to see even more development and higher liquidity in perpetual markets.”
Binance Smart Chain joins several other significant players in investing in MCDEX. Other players taking a slice of the MCDEX action include Alameda Research, Delphi Digital, Multicoin Capital, Fenbushi Capital, DeFiance Capital, Incuba Alpha, D1 Ventures, DeFi Alliance, and NGC.
Tactical Decision
Binance is investing in MCDEX at a time when its own forays into the derivatives market have been curtailed by multiple regulators from across the world. South Africa, Australia, Singapore, Japan, Ontario, and the UK are among the many regions to have given Binance cease and desist orders.
While centralized exchanges such as Binance have a focal point at which regulators can aim and fire, decentralized exchanges are more difficult to target. MCDEX is not the first derivatives exchange that Binance has invested in. Binance is also heavily invested in Injective Protocol, both financially and in its development via Binance Labs.
Even as Binance is officially backing away from derivatives markets, investments in decentralized partners are helping it strengthen its involvement in the market.
What is MCDEX:
MCDEX aims to build a decentralized version of BitMEX. MCDEX is a decentralized exchange (DEX) that aims to offer perpetual swaps trading. The MCDEX Perpetual contract provides up to 10x leverage by using a funding mechanism that keeps prices anchored to an index. MCDEX relies on an automated market maker (AMM) to provide liquidity and calculate the funding rate. MCB is the multi-purpose token utilized in MCDEX’s decentralized protocol, facilitating perpetual contracts trading.
Where to learn more about MCDEX:
Source : bsc.news
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