DeFi protocol Elixir has closed a $7.5 million Collection A fundraising spherical at a $100 million valuation, geared toward serving to enhance liquidity on 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 keen to spend money on new primitives that can advance the area and is proud to have led Elixir’s Collection A increase,” stated Hack VC Managing Companion Ed Roman. “Alternate liquidity has at all times been a problem, particularly for order ebook DEXs and token tasks the place capital is extremely inefficient: reliant on a small handful of corporations. The adoption of Elixir by order ebook exchanges throughout the area, mixed with the robust expertise that has already made it greater than two years, positions them as one of many leaders so as ebook liquidity on exchanges.”
From seed to Collection A
This newest Collection A funding spherical follows Elixir’s seed spherical in January, which raised $2.1 million with backing from FalconX, Commonwealth, Chapter One, Ava Labs and BitMEX founder Arthur Hayes.
“We’re thrilled to have closed our Collection A as we head into our launch,” stated Philip Forte, co-founder and CEO of Elixir. “With this newest spherical of funding, we will broaden our private workforce and strengthen our engineering efforts to speed up our roadmap to assist extra use instances leveraging our protocol infrastructure.”
Elixir’s present 17-person workforce consists of veterans from corporations comparable to Gemini, Hudson River Buying and selling and Tokensoft.
Growing order ebook liquidity in DeFi
Centralized exchanges have at all times favored order books as probably the most environment friendly buying and selling atmosphere. Extra decentralized exchanges are actually leaning in direction of this mannequin, however restricted liquidity stays a problem.
Order book-based decentralized exchanges enable customers to execute orders straight 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, which makes use of sensible contracts for liquidity swimming pools to facilitate decentralized buying and selling of particular token pairs.
Elixir permits customers to straight present liquidity to pairs on order ebook exchanges and earn maker rewards with the same risk-return profile to AMMs, the workforce stated. By driving deeper liquidity, Elixir goals to create a extra environment friendly buying and selling atmosphere characterised by tighter bid-ask spreads and elevated quantity.
Elixir’s delegated Proof-of-Stake protocol is anticipated to launch on Mainnet within the coming weeks and combine with decentralized exchanges comparable to Vertex, Bluefin and WooFi. In response to the workforce, Elixir can even allow permissionless market options on dYdX V4 early subsequent 12 months.