BBO Exchange, a new decentralized derivatives trading platform, has successfully raised $2.7 million in pre-seed funding, according to an announcement. The exchange differentiates itself as the first DEX focused on perpetuals to utilize the concept of Oracle Extractable Value (OEV) in its liquidation process, enhancing market efficiency. The funding round comes ahead of the testnet launch of BBO Exchange’s AMM.
BBO Exchange (BBOX) aims to bring a fresh approach to decentralized derivatives trading, thanks to the pioneering use of an auction mechanism that profits from a DeFi phenomenon known as Oracle Extractable Value. Similar to Maximum Extractable Value (MEV), it enables liquidity providers to capitalize on the inherent latency in oracle price updates. Liquidity provision can be concentrated around a dynamic price range, meaning it’s optimized for market efficiency. Furthermore, BBOX’s signal-driven dynamic distribution AMM allows an LP to correlate price ranges with other assets, making capital work more efficiently. The platform also offers a scalable SDK design and user-friendly interface.
BBOX will launch on Linea, the zkEVM Layer 2 developed by ConsenSys, which is also one of the investors that participated in the pre-seed round. Registration for the private BBOX testnet has already opened.
Star Investor Lineup
The announcement from BBOX confirms that the pre-seed funding round was completed in the third quarter of last year, co-led by early-stage funds Hashed and Arrington Capital. Other investors included ConsenSys, CMS Holdings, Flow Traders, Manifold Trading, and several more. Based in Singapore, the project is led by Ray, a former contributor to Pyth Network who is also a former member of the crypto team at Jump Trading, alongside Olivia, a former senior software engineer at leading U.S. exchange Coinbase. BBOX was also previously one of 12 DeFi projects selected by Binance Labs for its exclusive incubation program.
In a press release accompanying the funding announcement, Ray said: “We aim to provide the entire DeFi ecosystem with both the infrastructure and the liquidity layer for derivative trading, and our ultimate goal is to create a venue where users can trade everything, earn on everything, and do both very effectively.”
Edward Tan, investor at Hashed, said: “We believe Perpetual DEXs are one of the most profitable verticals in crypto and we’re excited to back BBOX — a team that distinguishes itself well in a crowded, competitive market […] We believe the best people are leading this product — crypto-native experts with relevant experience in Traditional Finance, Quantitative Trading and Engineering.”ConsenSys’ Linea blockchain is a Layer 2 protocol based on zero-knowledge technology. Within a month of going live at the EthCC event last year, the mainnet had seen over 150 dapp deployments, over 100,000 weekly users, and more than 2.7 million transactions. BBOX will join a growing dapp ecosystem that includes leading DeFi protocols such as Uniswap V3, Aave, and Sushi.
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