Renegade manages to successfully obtain for itself an amount of $3.4 million from Dragonfly. This was achieved with the aim and intention of creating an on-chain dark pool, an end-to-end encrypted DEX having midpoint trades for zero price effect. The funding that took place happened to have been a seed round which was led by Dragonfly. The on-chain dark pool that is to be created will introduce anonymity guarantees for the sake of a greater trade implementation.
According to the team of Renegade, it has been closely observed that the volume in terms of crypto trading has witnessed a tremendous increase for a while now, and there also happens to be a lot of movement within Crypto-conventional DeFi protocols. Yet, it also happens to be a fact that almost 95% of trading activities are carried out off-chain, within centralized exchanges, along with opaque OTC desks.
This seems to happen because of the exceptionally increased fees, along with the fact that the decentralized exchanges happen to be very adversarial surroundings that pave the way for poorer trades in terms of prime market players. There is also the factor of Atomic MEV. Here, traders who have a great amount of slippage tolerance invariably get squeezed. In the case of copy-trading, various tools happen to provide a person the ability to, with ease, escape the portfolio of just about any wallet address, thus losing out on the privacy factor.
There also happens to be the issue of counterparty discrimination, where all details related to trade are made public, with everyone concerned being able to analyze the data in order to be able to identify all prospective traders. This inadvertently brings about matters of discrimination in the filling of trades, as well as in the quoting of prices, where the counterparties are concerned.
Cross-exchange Arbitrage also happens to be another major factor in the case of a divided marketplace. In this case scenario, just about any error in implementation exposes the trader to cross-exchange Arbitrage. Yet another reason happens to be the statistical Arbitrage, wherein tools such as TWAP order types happen to be incorporated in order to assist the massaging of orders within the market, which in turn, happen to leave signs that are visible to arbitrage bots.
Renegade, on its own part, is actively involved in addressing all of these issues with the creation of an end-to-end encrypted exchange, which happens to be a dark pool. This is made possible with the effective utilization of the improvements carried out on multi-party computation (MPC), along with zero-knowledge proofs, in order to be able to offer the most powerful guarantees of anonymity.