Delta Exchange, a cryptocurrency derivatives exchange, has raised USD5 million from industry-leading investors in a private sale for DETO, the platform’s native token.
Participating investors include Sino Global, Aave Ventures, CoinFund, Kyber Network, Spartan, QCP Soteria, LuneX Ventures, gumi Cryptos Capital, BR Capital etc.
Delta Exchange offers Perpetual Swaps, Futures, and Options on Bitcoin and over 60 altcoins with up to 100x leverage. The exchange also offers advanced derivatives products such as interest rate swaps and calendar spreads on Bitcoin and is the first to launch a marketplace for retail traders to discover and subscribe to battle-tested algo trading strategies. The combination of these robust features promotes accessibility among traders allowing them to participate in fast-paced crypto markets without complexities.
“The completion of DETO’s private sale builds on to the great year Delta is having. We have seen an increase in revenues, trading volumes, customer acquisition and have added a number of new products and features to the platform. We look forward to an exponential growth in the coming months,” says Pankaj Balani, CEO of Delta Exchange.
Coinciding with the token launch, liquidity mining and trade farming features will go live on Delta Exchange. This marks the first offering of liquidity pools on a centralised derivatives exchange. Delta will also open the DETO-USDT market immediately after the token launch. DETO-USDT is going to be the first spot market on Delta Exchange, which has been a derivatives-only exchange till now. The platform will soon start to offer spot markets on Bitcoin and Altcoins.
“DETO is integrated across the value chain of the exchange. It will help boost liquidity via liquidity mining, it will help increase volumes via attractive cashback and it will help build customer loyalty as DETO can be used to pay trading fees, at higher of market price or MSP (minimum support price). These features will boost the platform’s growth which will in turn boost DETO,” Pankaj adds.
“The Delta team has experience in creating compelling financial products for both institutions and retails, including being the first centralised exchange to offer crypto interest rate swaps and the first to list many perpetual swap products,” says Kelvin Koh, CIO at Spartan. “We’re excited for Delta’s unique positioning in India, an increasingly important market in crypto, and are thrilled to support the team”
“There is no doubt that the derivative market of cryptos will be huge,” says Rui Zhang, GP of gumi Cryptos Capital, “Given the nature of cryptos, a variety of derivative products to fulfill the different demands of the mass users will be a key factor to succeed. I am impressed by how creative and how fast the Delta Exchange team is able to develop and roll out new derivative products.”
Delta Exchange Token (DETO) is an ERC-20 utility and rewards token that powers trading on the Delta Exchange platform. It utilises liquidity mining via market-making pools, the first liquidity pools developed by a derivatives exchange, which resemble those of existing DeFi AMM pools with key differences. Delta’s liquidity pools have a fixed capacity and will not absorb capital beyond a certain threshold. “A ceiling is kept to drive capital efficiency and to boost the APY on the capital in pools. This structure also creates competition amongst liquidity providers and will help fill the pools faster,” says Pankaj.
Matthew Graham, Partner and CEO of Sino Global, says: “The Delta team led by Pankaj is among the best qualified we have encountered. Pankaj and Jitender have worked in financial markets & derivatives trading at Citi, UBS, and GIC. Saurabh is a serial entrepreneur with a track record of building products at scale. Sino Global is thrilled to support team Delta as a strategic investor and partner.”
Liquidity providers will earn DETO as a reward in addition to returns generated from market-making by AMM pools. Traders who trade on the exchange will be distributed DETO as cashback from the daily rewards pool basis their trading volumes.
“We have been long-term supporters of Delta and are impressed by the way they have grown. We like DETO and its design, which has aspects of both DEFI and CEFI. It is one of the most innovative token designs we have seen to date,” says Loi Luu, Co-founder and CEO of Kyber Network.