DeFi protocol Elixir has closed a $7.5 million Collection A fundraising spherical at a $100 million valuation, designed to assist it enhance liquidity throughout decentralized order ebook exchanges.
Hack VC led the spherical, with participation from NGC Ventures, AngelList Ventures, Bloccelerate and angels from Ledger Prime, Genesis Buying and selling and Hudson River Buying and selling, amongst others, in accordance with a press release.
“Hack VC is eager to spend money on new primitives pushing the house ahead and are proud to have led Elixir’s Collection A increase,” Hack VC Managing Associate Ed Roman mentioned. “Trade liquidity has at all times been an issue, particularly for order ebook DEXs and token initiatives the place capital is very inefficient: depending on a small handful of corporations. Elixir’s adoption by order ebook exchanges throughout the house, paired with the sturdy know-how it’s been creating for over two years, positions them to be among the many leaders for order ebook liquidity on exchanges.”
From seed to Collection A
This newest Collection A funding spherical follows Elixir’s seed spherical in January, which raised $2.1m with help from FalconX, Commonwealth, Chapter One, Ava Labs and BitMEX founder Arthur Hayes.
“We’re excited to have closed our Collection A as we head into our launch,” Elixir co-founder and CEO Philip Forte mentioned. “With this newest spherical of funding, we’re in a position to increase our in-person crew, in addition to bolster our engineering effort to expedite our roadmap to help extra use circumstances leveraging our protocol infrastructure.”
Elixir’s present 17-person crew contains veterans from corporations like Gemini, Hudson River Buying and selling and Tokensoft.
Boosting order ebook liquidity throughout DeFi
Centralized exchanges have at all times favored order books as probably the most environment friendly buying and selling setting. Extra decentralized exchanges at the moment are gravitating towards this mannequin, however restricted liquidity stays a problem.
Order book-based decentralized exchanges allow customers to straight execute orders with different merchants in the same option to centralized exchanges however on-chain, retaining full custody of their crypto belongings whereas putting trades. This contrasts with the dominant automated market maker DEX mannequin, utilizing liquidity pool good contracts to facilitate the decentralized buying and selling of particular token pairs.
Elixir permits customers to produce liquidity on to pairs on order ebook exchanges and earn maker rewards with the same risk-return profile to AMMs, the crew mentioned. By incentivizing deeper liquidity, Elixir goals to create a extra environment friendly buying and selling setting characterised by tighter bid-ask spreads and elevated quantity.
Elixir’s delegated Proof-of-Stake protocol is predicted to launch on mainnet within the coming weeks, integrating with decentralized exchanges like Vertex, Bluefin and WooFi. Elixir can be set to energy permissionless market options on dYdX V4 early subsequent yr, in accordance with the crew.
