Durafi, the world's first fully decentralized exchange designed specifically for the trading of ETF-style cryptocurrency index derivatives, today announced the close of its pre-seed round. Republic Capital, Quantstamp, Palm Drive Capital, Panony, BTSE, and other strategic investors participated in the round.
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Durafi makes managing diversified crypto market exposure easy, secure, and cost-effective for the modern asset allocator. Its new class of tradable crypto currency indices called "Durafi Fund Tokens" (DFTs), track the performance of baskets of cryptocurrencies, such as the Durafi Crypto Index, Durafi Defi Index, and Durafi NFT Index.
"We hear it every day, investors increasingly want to gain exposure to the overall crypto market. Most, however, remain on the sidelines because they have challenges selecting individual tokens or finding reliable ways to achieve diversified market exposure on trusted platforms. Durafi is solving this problem, and as such will increase cryptocurrency market participation by those who want to invest in the overall trends," stated Seamon Chan, Managing Partner at Palm Drive Capital.
DFTs allow investors to go long or short crypto trends more easily, removing the need to try and pick individual winners, while also dramatically reducing the cost and complexity of achieving diversified portfolio exposure. Buying a single diversified DFT index can replace the dozens of traditionally required transactions needed to achieve portfolio diversification. DFTs are designed to deliver many of the advantages that Exchange-Traded Funds (ETFs) brought to traditional financial markets, however they surpass ETFs, taking full advantage of decentralized finance - including the ability to offer decentralized custody, decentralized, democratized sourcing of liquidity providers, and community-based selection for future Durafi indices to be launched.
"It's abundantly clear that the modern asset allocator, from family offices to pension funds, needs to have rigorously diversified exposure into the cryptocurrency industry with none of the belabored hassle of current DeFi infrastructure and token-picking trading platforms," states Alex Ye, Managing Director at Republic Crypto.
"We believe it should be simple and low cost for any trader to go long or short the entire crypto market or specific sub-sectors in the same way that ETFs and index futures revolutionized traditional financial markets. Moreover, we're leveraging DeFi to empower communities to direct the platform's development," commented Vincent Fernando, Co-founder of Durafi.
DFTs are more cost-efficient than investing into and out of traditional crypto funds due to the way that Durafi's decentralized exchange has been designed to trade DFTs and invest long or short entire indices with or without leverage. Furthermore, part of Durafi's pre-seed funding will be utilized in the development of Durafi's Hybrid Orderbook & AMM, which will provide investors with liquidity across a range of tradable indices.
"We're excited about the opportunity for Durafi to improve the entire cryptocurrency market by providing investors with a rich set of indices to trade. For us, a key decision factor to invest in Durafi was its team. Their experience combines cryptocurrency and tech with traditional finance experience," stated Richard Ma, CEO of Quantstamp.
"There's a lot we can bring from the traditional finance technology world to the cryptomarket. I'm a trader at heart and am designing our DFTs to democratize the playing field, allowing anyone to benefit from trading strategies that traditionally only pro shops used to enjoy," concludes Steve Hung, Co-founder at Durafi.
Durafi's initial three indices, the Durafi Crypto Index (DCI), Durafi Defi Index (DDI), and Durafi NFT Index (DNII) are designed to represent the overall market performance of their constituents. More information and updates on Durafi's development can be found at https://dura.fi.
