A group of crypto trading firms based in Chicago has introduced a new alliance to bring DeFi projects around the world and crypto trading firms operating in Chicago together.
The alliance has given the name Chicago DeFi Alliance (CDA). The founding crypto trading firms include Volt Capital, Jump Capital, CMT Digital, and Cumberland DRW.
Imran Khan, general partner at Volt Capital announced the news in blog post published on Wednesday, April 8. According to the announcement dYdX Exchange and Yield, are the first two start-ups to be assisted to by Chicago DeFi Alliance.
Volvo Capital said that the aim of the alliance is to provide entrepreneurs and new players entering the Decentralized Finance (DeFi) with meaningful support and guidance with respect to trading and applicable regulations.
Volvo Capital said:
“We are providing start-ups with “real world” trading feedback as early as possible to help them attract liquidity and offer products trading / financial firms are likely to adopt.”
According to the website, the CDA is to support start-ups in crypto finance at all stages, such as access to market makers, liquidity, product feedback, professionalized traders and talent that will led the projects form an idea to a full-fledged product for traders.
The CDA will validate product offerings of start-ups with seasoned traders and trading firms.
The alliance aims to bootstrap liquidity for early-stage DeFi projects through its vast network of trading firms, traders and liquidity providers.
The alliance will also help new players by providing strategic guidance on current regulatory best practices.
According to the announcement, the first unit of start-ups include dYdX and Yield. According to other sources, top officials from TD Ameritrade, DV Trading, Arca, Compound, and seven other firms has joined the alliance as Mentors.
Details from sources states that each CDA-associated start-up will be paired with a mentor and training program spanning form four to six weeks learn about trading firms’ needs in DeFi. The projects will also have access to exclusive events and workshops led by the largest trading firms in Chicago.
Until now, the alliance has announced 11 mentors that include, Imran Khan, General Partner at Volt Capital; Peter Johnson, Principal at Jump Capital; Sunayna Tuteja, Head of Digital Assets at TD Ameritrade; Robert Leshner, Founder of Compound Finance.
CDA believes this initiative will also help crypto trading firms to learn more about DeFi. According to CDA, many trading firms are interested in DeFi but the lack of through understanding about DeFi is roadblock to their way.
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