EthosX, a decentralized derivatives trading platform, has proudly announced the successful closure of its recent fundraising round, securing a total of $1.8 million in capital. This milestone was made possible by a lineup of prominent investors, showcasing strong industry support and confidence in EthoxX’s approach to financial derivatives.
The investors backing the latest fundraising round were: Y Combinator, Franklin Templeton, Ascensive Assets, , Emurgo Ventures, Stacker VC, Sudo Research, Token Metrics Ventures, Cogitent Ventures, Asymmetry VC, Upsparks VC, Austen Allred (founder and CEO of Bloom Institute of Technology), MH ventures, Global DeVC (Matrix Partners), Crypto Times and other smaller funds and angels.
Coming Up
While celebrating its successful fundraising campaign, EthosX is excited to offer a glimpse into its upcoming product, SWITCH. Representing a pair of tokens facilitating perpetual rolled-over put options on crypto assets, SWITCH is set to change the game in derivatives trading.
The EthosX team says this product aligns with the platform’s commitment to providing secure, non-custodial solutions for traders while simultaneously minimizing risk and increasing transparency.
Other Core Products
EthosX has meticulously crafted SWITCH as part of a broader suite of products, each designed to address specific challenges within the derivatives ecosystem.
This suite includes the platform’s Institutional OTC Trading Platform currently serving as EthosX’s flagship product, which connects buyers and sellers through a Request for Quotes (RFQ) off-chain system. The post trade infrastructure is completely on-chain and automated, including an on-chain clearing house, extremely versatile margining system and a liquidation engine. Undercollateralized trading, portfolio margin, trade continuity, even in defaults from one side, are some of the key features.
Apart from direct trading, there are other higher level products built on top of the OTC trading infrastructure. The first of these products is liquidation protection for lending protocols. With this product, users can purchase pre-structured on-chain derivatives to serve as automated 24×7 insurance against liquidations on lending protocols, enhancing risk management in decentralized finance.
Addressing Industry Challenges
EthosX aims to identify and tackle three challenges plaguing the trading industry:
The first challenge is outdated trading systems. The traditional derivative trading system has seen minimal reform since the early 2000s, resulting in inefficiencies, high settlement failure rates, and too many intermediaries. EthosX’s smart-contract-based infrastructure eradicates intermediaries, enabling direct on-chain options trading, thus enhancing security.
Next, EthosX has recognized inefficiencies in collateral management, which hinder leveraged derivatives trading in platforms like DeFi option vaults. Thus EthosX brings the best practices of traditional finance for margins and risk management in the form of an on-chain clearing house which provides CME/LCH level features directly on-chain . This includes, trade novation, cross-margining, waterfall of insurance funds, trade auctions etc. Thus, EthosX ensures trade continuity and high capital efficiencies while keeping the counterparty risks at a minimal level
Third, the company addresses limited retail derivatives knowledge. It’s no secret that retail traders often lack sufficient knowledge of derivatives, thus limiting their participation in speculative activities. Products introduced by EthosX are designed to simplify derivatives for retail users, offering pre-structured options for risk hedging on various crypto assets or protocols. Further, the risk of losing funds due to exchange blow-up often holds back retail crypto traders from derivatives trading. Due to its non-custodial nature, SWITCH addresses this by ensuring assets are always under the control of traders.
About EthosX
EthosX was founded in 2022 by Deepanshu and Smith Patoliya and is headquartered in Claymont, Delaware. As the former Vice President of JP Morgan Chase’s Global Derivatives Clearing business, CEO Deepanshu brings almost a decade of leadership and industry expertise.
The company is a blockchain-based infrastructure for automated and non-custodial clearing and settlement of financial derivatives. Its solutions are designed to eliminate inefficiencies, increase transparency, and redefine the future of derivatives trading globally.
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