Ellipsis Labs Nabs $20M in Paradigm-Led Funding Round to Boost DeFi Tech Development
Summary:
Crypto exchange development firm, Ellipsis Labs, has secured $20 million in a Series A funding round led by Paradigm. The company, known for its Phoenix decentralized exchange built on the Solana blockchain, will use the funding to improve its decentralized finance technology stack. Paradigm, the primary investor, is also reportedly in talks to raise up to $850 million for a new fund. Paradigm's portfolio includes big crypto firms such as Coinbase, Blur, dYdX, Compound, and Citadel Securities.
Crypto exchange developer, Ellipsis Labs, has received a $20 million boost in a Series A funding round led by Paradigm. The round also saw participation from Electric Capital and notable individuals such as Mike Neuder and Justin Drake of the Ethereum Foundation, Anatoly Yakovenko of Solana Labs, Sreeram Kannan of EigenLayer, and Uri Klarman from bloXroute. Ellipsis Labs is the mastermind behind the Phoenix decentralized exchange, an on-chain order book built on the Solana blockchain. The funding will be channelled towards the development of the company's decentralized finance technologies.
In August 2023, Electric Capital spearheaded a seed funding round generating $3.3 million for Ellipsis Labs. Currently, Phoenix, the platform crafted by Ellipsis Labs, has a total value locked (TVL) of $14.31 million and reported a $238.79 million trading volume within the past 24 hours. Phoenix is ranked eighth among Solana's largest decentralized exchanges by TVL according to DefiLlama, a web3 data tracking tool.
Phoenix facilitated trade settlements are accomplished by removing the need for a “crank.” In a blockchain system like Solana, a crank advances asynchronous trade settlements, which allows multiple transactions to take place at once without each having to be finalized before the next. Related to this, Phoenix also offers thorough on-chain market event data, featuring placed limit orders, fills, and cancelled limit orders, giving users full access to the platform's complete activity history. Ellipsis Labs advocates for a DeFi approach that merges traditional finance's liquidity and efficiency with decentralized benefits.
The lead investor in this round, Paradigm, is a crypto venture capital firm reportedly in talks to raise between $750 million and $850 million for a new fund. This follows a period of recovering crypto markets. If successful, this would be Paradigm's largest fundraiser since its announcement of a $2.5 billion fund in November 2021, which at the time was the largest cryptocurrency fund ever.
Paradigm recently spearheaded another funding round aimed at raising the valuation of Merkle Manufactory, the company behind social network Farcaster, to $1 billion. The Paradigm portfolio includes significant crypto firms such as Coinbase, Blur, dYdX, Compound, and Citadel Securities.
Published At
4/5/2024 10:47:01 AM
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