Primex Finance, a decentralized finance protocol for cross-DEX margin trading with trader scoring mechanisms, said today it has closed on a $5.7 million strategic fund raise.
The round was co-led by Stratos Technologies and CoinFund, and saw participation from Hypersphere, GoldenTree Asset Management, Wintermute, GSR, LedgerPrime and a string of other venture capital firms and angel investors.
Primex has set itself a goal of combining the two most popular use cases of decentralized finance – decentralized exchanges and lending – into a single platform that’s able to optimize swaps across multiple ecosystems. To do that, it has developed a novel margin trading protocol that allows users to borrow and lend cryptocurrency. It enables borrowers to obtain loans quickly and anonymously, while lenders gain profits from the interest on repayments.
The Primex protocol functions in a similar way to traditional lending models, with the main difference that neither the borrower or the lender interacts directly. Instead, users who’re willing to lend capital lock their cryptocurrency into a liquidity pool that matches those assets to borrowers. Smart contracts are used to execute all transactions, ensuring no agency or entity controls the funds.
Lenders have the ability to select from a choice of risk profiles where they can allocate their assets, receiving higher interest if they’re willing to take more risk. The profits from its loans are transferred to a credit pool where they’re shared among all lenders, increasing their returns beyond standard interest rates.
Primex said today’s investment is a key milestone on its roadmap that will enable it to launch version one of its protocol, which will allow leveraged trading in cross-DEX environments. Primex ultimately aims to launch DeFi features including portfolio management for crypto assets, trading pairs, margin trading fees and profits supporting yield farming, plus a seamless bridge between multiple DEXs to support leverage trading across multiple chains.
Version one of the Primex protocol aims to deploy on a select few chains to bridge their DEXs with liquidity.
Stratos Technologies’ chief investment officer Rennick Palley said he’s backing Primex because of the way it replicates many TradeFi broker capabilities in a way that’s composable with other protocols and consistent with the philosophy of DeFi.
“Primex is a game changer for those looking to run a levered portfolio without going through a centralized exchange or a collateralized lending protocol,” he added.
“We are excited to have such enormous support from the world’s leading investors, trading organizations and market makers,” added Primex co-founder and VP of Growth Dmitry Tolok.
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