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Deribit partners with a Y Combinator-backed firm to automate trading strategies for retail users

Yilun Cheng

Cryptocurrency derivatives exchange Deribit announced today a partnership with Y Combinator-backed Mudrex to provide everyday investors with trading algorithms developed by professional traders. 

Mudrex's platform allows retail crypto investors to use curated trading strategies without having to understand the complex algorithms behind them. Professional traders can develop and submit algorithms to Mudrex. The algorithms will then go through an approval process and then appear on the platform as tools for investors. Once investors select a trading strategy, their trades will be automatically placed on Deribit without having to leave the platform. 

The smaller company's collaboration with Deribit marks its first official partnership with an exchange, said Mudrex CEO Rohit Goyal. Notably, although according to Goyal, 30% of Mudrex users are based in the U.S., the new service coming out of this partnership will not be available to U.S. users.

Though one of the most popular derivatives exchanges on the market, Deribit is facing intensified competition from rivals such as BitMEX, Binance, and CoinFLEX.

"Right now you see a lot of exchanges popping up, especially futures exchanges, I think in the next two to three years only a handful will be left,” said Deribit COO and Co-founder Marius Jansen. “At Deribit we really focus on the technology, we think technologically advanced exchanges will have the biggest chance to survive.”

Deribit hopes that its partnership with Mudrex will help the exchange attract more retail traders. "We have always been focusing on the professional side, the professional clients,” Jansen said. “What Mudrex can help us with is to bring more retail flow to the exchange."