Kyber Ventures Investing In Forward
What is Forward?
Forward is a decentralized finance platform on EVM-based chains which majorly offers two services: The decentralized derivative exchange (DDEX) and The lending & borrowing pools (LBPs). Both services support each other. Forward DDEX needs liquidity to operate, while the LBPs receive real borrowing demand and thus accrue real profits from the derivative trading orders.
The Automated Position Hedger
Forward is developing a newly invented protocol for decentralized derivative trading, where short and long positions are matched against each other using an advanced protocol named Automated Position Hedger (APH). Forward DDEX acts as a counterparty to instantly match users’ long and short perpetual Futures orders. As a result, Forward does not have limit orders and does not require market makers. The risk of the platform acting as a user's counterparty is completely hedged using the tokens in the lending and borrowing pools.
How APH works
APH starts operating after a user submits a Long or Short position to Forward DDEX
The protocol will borrow the pair of borrowed tokens from the LBPs (Lending & Borrowing pools).
Then, it swaps tokens with the same token in order and keeps them inside a temporary vault until the positions are closed. After the positions are closed, the protocol will reverse the mechanics; swap, return, and give the profit to the user or take the loss from the user.
In short, Forward provides a product similar to a contract for the difference to traders hedge buy a temporary pool. This helps traders optimize their trading fees and not worry about funding fees. Also, liquidity providers can have higher yields without impermanent loss.
Why Forward
We believe Forwards unique approaches would bring innovation to the current decentralized derivative space and takes us one step closer to DeFi mass adoptions. Their solution benefits traders and liquidity providers and optimizes the liquidity pool.
Many retail users get used to trading on similar products in traditional exchanges. We think Forward’s simple UI/UX and easy-to-understand product will help many users have an easy transition when they start trading futures on DeFi.
The forward founding team has substantial experience in research, building products, and marketing and successfully launched a well-known crypto exchange in Thailand. With their past experience and support from current backers, they can scale up their business at regional and even global scales.
About KyberVentures
Kyber Ventures is the investment arm of Kyber Group, a Web3 Tech-focused group with popular products, including a leading KyberSwap DEX & an all-in-one non-custodial web3 wallet Krystal. Kyber Ventures, founded and run by an OG web3 builder, wanted to support entrepreneurs to build the next giants of the decentralized world.