Efficient Frontier, a crypto market maker, has received a $2 million investment from Alameda Research, a quantitative trading company and liquidity provider. The Tel Aviv-based market maker invested up to $10 billion a month in 50 cryptocurrency exchanges.
Alameda Research, which claims to control over $70 million in digital assets and trade over $1 billion every day across thousands of items, reported on Monday that the funds will be used to boost its balance sheet and role in the crypto-asset market.
The investment, according to Alameda Research CEO Sam Bankman-Fried, would boost the value proposition for their partners. He claims that Efficient Frontier is one of the most advanced trading firms, and that partnering with them to improve the crypto space has piqued their interest in joining the trip.
Since their inception in 2017, Efficient Frontier has given liquidity to a number of cryptocurrency exchanges, both centralized and decentralized. In 2020, their trading volume increased by more than a hundred percent.
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The quantitative trading firm reported a $40 million investment in DeFi protocol Oxygen, a Solana-based lending network that will be incorporated into travel app Maps.me, a few weeks ago.
Reef Finance, based in Polkadot, announced that Alameda Research had invested $20 million after purchasing REEF tokens. Almada Research has become a major stakeholder in Reef Finance’s cross-chain decentralized finance (DeFi) platform, according to the company.
The Alameda investment is a major bet on DeFi traction outside of Ethereum, the leading blockchain network for bank-like financial applications. DeFi has been a $42 billion problem, but it has also pushed up gas fees on the Ethereum chain to all-time highs.