Futureswap has announced it will launch version 4 of its on-chain crypto derivatives trading platform after raising $12 million from venture capital firms.

The capital raising was co-led by Ribbit Capital, Framework, True and Placeholder.

“The Futureswap team’s vision to build more efficient and transparent financial markets is a large step forward in transforming the world of finance,” said Ribbit Capital investor Zack Rosen.

“We believe DeFi has the potential to enable radically new financial products. We have been impressed by the quality of people that have joined Futureswap on their journey and excited to be their partner.” 

Futureswap v4 is first launching on Arbitrum, the Ethereum scaling solution, leveraging UniSwap v3’s core exchange and supporting architecture.

It’ll let traders go long and short for up to 30x on any asset with a Chainlink Price Feed and a Uniswap liquidity pool.

Traders will also be able to take leveraged positions on CryptoPunks and other NFTs, using NFTX’s fractionalised NFT marketplace.

For those new to crypto, this is one of the most intriguing things about decentralised finance – the way various protocols are able to work together in a kind of “money Legos”.

“Not only is Futureswap a revolution for traders but it’s also a new primitive for developers to build novel and exciting products leveraging the Futureswap protocol. We’re very excited to host the next wave of builders and markets.”

In addition to the others mentioned, Futureswap is also launching in partnership with REN, Gelato, and Visor Finance.

On-chain derivatives trading platforms have been a hot topic in crypto, especially given the overwhelming success of spot trading platforms like Uniswap.

Apollo Capital analyst Matthew Harcourt has told Stockhead that the Melbourne-based crypto investment firm believes that “on-chain derivatives and decentralised derivatives will be a major market opportunity,” and could capture market share from centralised platforms like FTX and Binance.