GammaX, a Singapore-based startup developing a new high-performance hybrid crypto derivatives exchange, has closed a $4 million seed round led by StarkWare, the creator of zero-knowledge proof technology and liquidity provider Dexterity Capital.
Alphanonce, Cobo, Genesis Trading, Kyber, Ledger Prime, Matrixport, Profluent, Uncorrelated, and 01Node are the other investors in the round.
GammaX stated in a press release.
“Our mission is to build the world’s fastest, most complete, easiest to use, and most responsive exchange available to traders,” said Defi Das, GammaX’s anonymous co-founder, in a statement.
“To do so, we are combining the best features of centralized and decentralized exchanges.”
GammaX has interviewed “hundreds of traders around the world […] to learn what they want in a next-generation perpetual futures exchange,” according to the GammaX co-founder.
“We’re hearing that many of the exchanges available in our industry fall short in a variety of areas when it comes to providing a first-rate trader experience,” DeFi Das added.
GammaX claims that the platform’s order book and matching engine are kept off-chain to achieve lower latency and a better user experience. In contrast, settlement and custody of user funds are handled on-chain via smart contracts.
“Because blockchain infrastructure is still in its early stages, completely decentralized counterparts can still not provide a sufficient user experience for traders.”
“We may reconsider this decision once blockchain infrastructure catches up,” GammaX’s vice president of marketing James Ryan told Decrypt.
GammaX offers no-fee trades.
Unlike many other Ethereum-based decentralized exchanges, GammaX is built on StarkWare’s layer-2 solution, StarkEx—a trading engine that supports various services, including derivatives trading.
Some applications running on StarkEx include dYdX, a popular order book-based margin trading platform, the NFT-centric projects Immutable and Sorare, and the spot decentralized exchange (DEX) DeversiFi.
According to GammaX, perpetual contract trading necessitates frequent price feed updates across a wide range of trading pairs. In terms of speed and cost-effectiveness, gathering this information on layer one is impossible to scale.
Other competitive advantages of StarkEx technology include the ability to keep trades fee-free.
Transaction fees are only charged when users deposit or withdraw funds from the GammaX smart contract.
“Gamma symbolizes high-energy and speed in physics and is also used in options trading as a measure of acceleration, which is why we chose the name GammaX,” Das DeFi says.
“GammaX has a proven track record of bringing innovative products to market,” said Uri Kolodny, CEO and co-founder of StarkWare. “We are excited to collaborate with them to usher in a new era of derivatives trading.”
Launch of the beta
GammaX intends to open its testnet to beta testers in the coming weeks before launching on the mainnet later this fall.
At first, there will be only two trading pairs: Bitcoin and Tether and Ethereum and Tether, both with 20X leverage. GammaX intends to increase the number of available pairs during the public testnet or mainnet launch.
“This will be evaluated during the closed beta phase, where GammaX will work closely with traders to evaluate which features are most important to them and which features make their life much easier,” the project’s vice president of marketing James Ryan told Decrypt.
“GammaX will be testing exotic derivatives, cross-collateral-margin, and intelligent liquidity algorithms to provide deep liquidity for a large number of trading pairs,” Ryan says.
Furthermore, GammaX, like many other exchanges, is planning the launch of its token with a rewards structure that, according to the exchange, will appeal to both beginner and advanced traders.
The incentives will include trading rewards, referral rewards, and “earn to learn” opportunities, a program aimed at educating GammaX users and assisting them in mastering the nuances of crypto derivatives.