MH Ventures, a boutique full-service venture capital firm in the blockchain, cryptocurrency & web3 space, has announced its participation in the seed round funding for EthosX, a blockchain-based DeFi platform offering end-to-end financial derivatives.
EthosX will use the funds raised in the seed round to continue developing its institutional over-the-counter options trading infrastructure and its retail product, SWITCH.
The OTC infrastructure allows trading parties to trade, clear and settle highly customizable vanilla/exotic options with each other directly, completely on-chain, without requiring any exchange or any other party in between. Thus the risk of trading via exchanges and subsequent blow-ups is completely nullified. Also, this infrastructure integrates with other DeFi protocols for creating complex investment and/or risk management strategies.
EthosX’s second product is SWITCH. This is an innovative hedging token which provides protection against falling cryptocurrency prices, giving investors a valuable tool for managing risk in their portfolios. This is similar to a perpetual put option which customers can hold in their wallets and directly receive the profits from the fall in prices of underlying assets (BTC & ETH for now). This makes it suitable for investors looking to manage risk in their portfolios, without requiring any exchange or intermediaries. With EthosX, users can easily manage their exposure to market volatility and be more confident in their investment decisions.
Kamran, Co-Founder & Partner at MH Ventures, said, "EthosX is a solution that facilitates trading and selling on-chain derivatives between cryptocurrency businesses and financial institutions. It allows direct trading of high-value on-chain options between two hedge funds, without intermediaries and with zero counterparty and settlement risk. EthosX's options infrastructure is user-friendly, secure, and efficient, making it simple for businesses to transact with one another. It is a reliable tool for trading and hedging in the DeFi world."
Deepanshu, the Co-Founder & CEO of EthosX, said, "We are glad to have MH Ventures with us. They are very helpful and supportive. Apart from their direct investment, they have introduced us to many other investors. They also have allied services (e.g. audit, marketing etc.) which are really useful."
MH Ventures has teamed up with some of the most well-known names in the crypto and blockchain industries, including Lend, magpie, Web3PORT, Sonic Wallet, SmartToken Labs, Decaf, Tatsumeeko, WINCAST, etc. They are passionate about investing in and supporting disruptive technologies and the people behind them. Their mission is to identify and invest in the best projects that have the potential to change the world for the better.
EthosX is a decentralized finance platform aiming to revolutionize how financial derivatives are created and traded.
Traditional financial derivatives markets involve central authorities such as exchanges, clearinghouses, custodians and clearing banks that carry out the roles of matching buyers and sellers, settling transactions, clearing cash flows, netting positions. handling deposits and withdrawals, and processing payments. These intermediaries are costly, slow, and have high failure rates (billions of dollars of trades suffer some type of settlement failure everyday).
On the other hand, in the crypto space, centralized exchanges have captured most of the derivatives trading and therefore are always at the risk of blowing up and taking their customers' assets with them, as has been proven over and over again in 2022.
EthosX uses blockchain technology to provide users with fully-functional financial derivatives on-chain.
With EthosX, users can create and trade financial derivatives without the need for centralized authorities. Powered by blockchain technology, EthosX offers fast and secure trading of financial derivatives with no intermediaries or centralized authorities involved. EthosX represents a groundbreaking new approach to financial derivatives and promises improved speed, efficiency, and security for traders. EthosX is starting with options, option-like tokens and customized perpetuals with plans to add more asset classes of derivatives in the future.