NFT Futures DEX Tribe3 Raises $2.1 Million In Funding To Expand Development

Key Points:

• Tribe3, a decentralized NFT futures market, has received $2.1 million to fund its next stage of growth.
• Spartan Capital, Newman Capital, Infinity Ventures Crypto, and other angel investors were among those who participated in the investment rounds.
• The public beta of its trading platform will be live on Arbitrum on May 3, 2023.

Tribe3, a social and gamified decentralized NFT futures exchange, completed $2.1 million in financing.

Participating investors include Spartan Capital, Newman Capital, Infinity Ventures Crypto, Modular Capital, Cogitent Ventures, Blockbuilders, Founderheads, Lapin Digital, Blockhype, etc.

It is reported that the DEX will launch its mainnet Beta version on Arbitrum on May 3, 2023. The first phase will support 4 NFT series, including Bored Ape Yacht Club, Mutant Ape Yacht Club, Azuki, and CryptoPunks.

Tribe3 is an NFT Perpetual platform that enables users to trade NFT-based perpetual futures contracts. Tribe3 has created a social networking tool to allow NFT users to collaborate and connect with one another.

Spartan Capital’s co-founder, partner, and chief investment officer, Kelvin Koh, stated:

“We are excited to work with Tribe3 in building out one of the leading NFT derivatives trading venues. We believe NFT is still in its nascent stage of development.”

Tribe3 creates virtual liquidity enabling users to trade using a vAMM model. This approach is compatible with the NFT’s illiquid nature.

Unfortunately, this methodology will result in platform arbitrage between Oracle and vAMM pricing. Tribe3 provides the following technique to reduce the gap between Oracle and vAMM prices: when the Oracle price is greater than the vAMM price (Oracle > AMM), the platform will ask the Short to pay the Long and vice versa.

Moreover, when the collateral goes below 10%, the position is liquidated by the liquidation bots. When a position is liquidated, the liquidation bot receives 50% of the value as a reward, with the remaining 50% going to Tribe3’s insurance fund.

Derivatives trading with NFT is still quite new and Tribe3 has many opportunities to grow and attract users in the NFT market with unique features like Battle, Avatar.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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