Derivatives DEX BBOX raises $2.7 million in pre-seed funding from Arrington Capital and others
Linea's ZK rollup technology enables BBOX to scale derivatives trading without sacrificing decentralization.
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Decentralized derivatives exchange BBO Exchange (BBOX) announced today that it has raised $2.7 million in a pre-seed funding round led by crypto investment firms Hashed and Arrington Capital.
We are excited to announce our $2.7m Pre-Seed Round co-led by @hashed_official and @Arrington_Cap along with major ecosystem players including @Consensys, @cmsholdings, @FlowTraders, @ManifoldTrading, @realMaskNetwork, and @LaserDigital_!
— BBOX (@bboexchange) January 30, 2024
The funding round included participation from several major players in the crypto ecosystem, including Consensys, CMS Holdings, Flow Traders, Manifold Trading, Mask Network, and Laser Digital from Nomura Group.
“The platform leverages Oracle Extractable Value (OEV) for liquidations and a dynamic multi-asset signaling AMM for on-chain traders, while making capital work efficiently for liquidity providers,” said Edward Tan, Investor at Hashed.
Oracle Extractable Value (OEV) refers to the profits miners or validators can capture by optimizing the order of transactions after an oracle price update. It is a subset of Maximal Extractable Value (MEV), which encompasses all values from transaction reordering.
BBOX aims to introduce an innovative crypto derivatives trading platform utilizing an auction mechanism powered by oracle-based extractable value for liquidations. This mechanism enables liquidity providers to focus liquidity within specified price ranges, improving market efficiency on the platform.
The company plans to launch its automated market maker (AMM) on Linea, a Layer 2 scaling network for Ethereum applications developed by BBOX backer Consensys. BBOX says its multi-asset, signal-driven dynamic distribution AMM will allow liquidity providers to mimic the strategies of traditional market makers while benefiting from passive liquidity provision.
“We are thrilled to support BBOX in their venture to advance decentralized derivative trading,” said Benjamin Lavergne, Investment Principal at Consensys. “This funding round also aligns perfectly with our mission of empowering innovative builders on the Linea platform.”
Additional investors in the round included Arcane Group, Draper Dragon, Vessel Capital, Aulis Venture, Formless Capital, and others.
BBOX was founded by former Pyth Network contributor Ray, previously with quant firm Jump Trading’s crypto team, and Olivia, formerly a senior software engineer at Coinbase.