TL;DR Breakdown
- Alameda Research invests heavily in crypto market maker.
- Investment to improve crypto space – Sam Bankman.
Alameda Research, a quantitative trading firm and liquidity provider, has staked $2 million in Efficient Frontier, a crypto market maker. The Tel-Aviv-based market maker invested in processes close to $10 billion monthly across 50 crypto exchanges.
Alameda Research which claims to manage over $70 million in digital assets and trade around $1 billion per day across thousands of products, announced on Monday that the investment would be used to expand its balance sheet and build its position within the crypto-asset sector.
According to Sam Bankman-Fried, Alameda Research CEO, the investment would improve the value proposition for their partners. He said Efficient Frontier is one of the most advanced trading companies, and working with them towards improving the crypto space has excited them to join the ride.
The Tel-Aviv-based crypto maker is also backed by venture capital firms Collider Ventures and Follow The Seed.
Since they came to life in 2017, Efficient Frontier has provided liquidity to several crypto exchanges, including centralized and decentralized platforms. Their trading volume was up by over a hundred percent in 2020.
Alameda Research recent crypto exploit
Weeks back, the quantitative trading firm announced that it invested $40 million into DeFi protocol Oxygen — a Solana-based lending platform that will be integrated onto travel app Maps.me.
Similarly, Polkadot-based Reef Finance said Alameda Research had made a $20 million investment after purchasing REEF tokens. Reef Finance said Almada Research had become a significant stakeholder in the cross-chain decentralized finance (DeFi) platform.
The Alameda investment represents a significant bet on DeFi traction outside of Ethereum, the leading venue for bank-like financial applications built on the blockchain. Demand for such services has made DeFi a $42 billion concern but has also driven up gas fees on the Ethereum chain to record highs.
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