Polychain gets behind a retail-oriented DEX in $21M funding round
By Bob Garcia
Retail cryptocurrency traders now have a dedicated platform backed by industry experts
A funding round in the cryptocurrency world has arrived for this month. According to reports, Clipper, a new decentralized exchange (DEX) launched on June 30 that caters to retail traders, took it upon itself to close one for a total of $21 million yesterday. Olaf Carlson-Wee’s Polychain Capital led the $4 equity round and had a fairly sizable stake in the $17-million liquidity round. Among the other investors that also stood out during this event were 0x Labs, DeFi Alliance and MetaCartel DAO.
In order to be able to guarantee the best-guaranteed prices for all retail trades, Clipper has been using a new automated market maker (AMM). Needless to say, there has been increasing competition among crypto exchanges for market share, and this has put commercial rates under downward pressure. Coinbase, for example, which is considered one of the leading exchanges in this space, generally derives most of its revenue from its high trading fees. However, arguably one of its biggest competitors is Robinhood, a free crypto trading platform with extremely low fees.
However, for Mark Lurie, the CEO of Shipyard Software, those low-fee and no-fee crypto exchange companies are often not what they appear to be as in most cases they have hidden costs built into the transactions and at other times, the user has the need to purchase a native token from the decentralized exchange Digix.
“We believe Shipyard is starting with a genuinely innovative approach that targets small to medium-sized merchants, not whales,” Carlson-Wee said in a statement. “Shipyard’s technology will fill a DEX gap that is desperately needed for retail merchants.”