# DerivaDEX

Startup profile on Capital Atlas: https://capitalatlas.ai/startups/derivadex

- Industry: Financial Services
- Headquarters: Palo Alto, US
- Website: www.derivadex.com
- Total disclosed funding: $2.7M
- Latest round: Seed (Jul 29, 2020)
- Investors on record: 6

## About

DerivaDEX is a decentralized exchange (DEX) focused on providing a secure and efficient trading environment for cryptocurrency traders, combining the benefits of centralized exchanges with the autonomy of decentralization.Founded in 2020 by Aditya Palepu and Frédéric Fortier, DerivaDEX is headquartered in Palo Alto, US. The company operates a decentralized exchange platform that enables users to trade cryptocurrencies in a secure environment. In July 2020, DerivaDEX raised USD 2.7 million in Seed funding from investors including CMS Holdings, LLC, Coinbase Ventures, Dragonfly Capital, Electric Capital, Polychain Capital, and Three Arrows Capital. This was the first funding round for the company, which has a total of USD 2.7 million raised to date.DerivaDEX operates as a decentralized exchange (DEX) that combines the advantages of traditional centralized exchanges with the autonomy afforded by decentralization. Its core offerings include a real-time price feed, rapid trade execution, and a competitive fee structure designed to enhance user experience for traders. The platform is governed by its users, including traders and token holders, who participate in decision-making regarding exchange features through a decentralized autonomous organization (DAO). The native token, DDX, plays an integral role in the ecosystem, facilitating governance, fee reductions, and staking opportunities for users. DerivaDEX primarily serves an international audience of cryptocurrency traders and investors who seek a secure and efficient trading environment while retaining control over their assets.DerivaDEX generates revenue primarily through transaction fees applied to trades executed on its platform. Users engage in trades using the exchange's native DDX token, which can also provide fee discounts when utilized for transactions. The trading structure is based on a B2C model, where individual traders transact directly on the platform, optimizing for decentralized trading efficiency. Furthermore, the exchange incorporates an insurance fund, where users can stake DDX to participate in insurance mining, creating an additional avenue for revenue generation while enhancing the overall trader experience. The exact pricing details of transaction fees and other services are tailored to maintain competitiveness in the rapidly evolving cryptocurrency market.DerivaDEX plans to utilize the USD 2.7 million raised in Seed funding to enhance its platform capabilities and expand its offerings. The company aims to introduce new trading features and tools designed to improve user engagement and trading efficiency. Moreover, DerivaDEX is targeting expansion into additional international markets, with plans to roll out its services in Europe and Asia by the end of 2022, further solidifying its presence in the global cryptocurrency trading landscape.

## Funding rounds

- Seed, Jul 29, 2020, $2.7M — Three Arrows Capital, Polychain Capital, Electric Capital, Coinbase Ventures, Dragonfly Digital Management, CMS Holdings, LLC

## Investors

- Three Arrows Capital — Seed
- Polychain Capital (https://capitalatlas.ai/funds/polychain-capital) — Seed
- Electric Capital (https://capitalatlas.ai/funds/electric-capital) — Seed
- Coinbase Ventures (https://capitalatlas.ai/funds/coinbase-ventures) — Seed
- Dragonfly Digital Management (https://capitalatlas.ai/funds/dragonfly-digital-management) — Seed
- CMS Holdings, LLC (https://capitalatlas.ai/funds/cms-holdings-llc) — Seed