In a significant boost for the decentralized finance (DeFi) sector, Ellipsis Labs has announced the successful closure of a $20 million Series A funding round. The investment was led by Paradigm, a notable venture capital firm specializing in cryptocurrency and blockchain-related startups.
Don't miss out on more posts like this—subscribe now!
Ellipsis Labs, a developer known for its innovative approach to DeFi, has been making waves with its on-chain order decentralized exchange (DEX), Phoenix. This platform, which operates on the Solana blockchain, has quickly risen to become the 8th largest Solana DEX by Total Value Locked (TVL).
Key Features of Phoenix:
Immediate Funds Availability: Phoenix prioritizes the immediate availability of funds, streamlining the trading process by removing the need for intermediary settlements.
Active Liquidity Management: Unlike passive liquidity, where funds are locked into a formulaic rebalancing pool, Phoenix allows market makers to update quotes in real-time. This flexibility enables them to react swiftly to market changes and protect against adverse selection.
Efficient Market Architecture: Designed by traders for traders, Phoenix showcases the importance of an efficient market architecture on the Solana blockchain.
Integration with Top Trading Firms: Phoenix’s rise in market share and integration with top trading firms underscores its impact within a year of launching.
Phoenix stands out in the crowded DeFi space by integrating the efficiency of traditional order books with the transparency and accessibility of decentralized finance. This unique combination allows users to experience the best of both worlds – the rapid execution of trades and the trustless nature of blockchain technology.
The DEX operates without the need for a ‘crank,’ a mechanism typically required in Solana’s ecosystem to facilitate asynchronous trade settlements. By eliminating this step, Phoenix enables a smoother and more efficient trading experience, allowing multiple transactions to occur simultaneously.
Ellipsis Labs embarked on its journey approximately 1.5 years ago with a clear mission: to build better on-chain liquidity primitives. The firm’s dedication to this goal is evident in the design and functionality of Phoenix, which aims to provide a seamless trading experience for its users.
The fresh capital from the Series A round will be instrumental in further developing Ellipsis Labs’ DeFi technology stack. The company plans to leverage these funds to continue merging the benefits of decentralized systems with the operational efficiency of traditional finance.
Sources: