Paradigm sponsors Ellipsis Labs’ latest funding round, raising $20 million.
Ellipsis Labs, a company specializing in the development of cryptocurrency exchanges, has successfully concluded a Series A funding round, raising $20 million. The funding was led by venture firm Paradigm, with participation from Electrical Capital and other notable backers such as Sreeram Kannan from EigenLayer, Anatoly Yakovenko from Solana Labs, Uri Klarman from bloXroute, Justin Drake and Mike Neuder from the Ethereum Foundation, and other industry insiders. Earlier in August 2023, Ellipsis Labs had raised an additional $3.3 million from Electric Capital.
The funds raised in this round will be used by Ellipsis Labs to advance its decentralized finance (DeFi) technology stack. The company is behind the Solana-based decentralized exchange (DEX) called Phoenix, which is currently ranked as a “top 5 spot dex” across all blockchains in terms of daily volume. Phoenix has a total value locked (TVL) of $14.31 million and recorded a trading volume of $238.79 million in the past 24 hours.
According to Ellipsis, Phoenix eliminates the need for a “crank” in settling trades. Cranks allow for asynchronous trade settlements, enabling blockchains to execute multiple transactions simultaneously without waiting for the finality of preceding transactions. The company believes that bringing the advantages of a decentralized system, such as accessibility, transparency, and auditability, to the liquidity and efficiency of traditional finance is the next step for DeFi. Phoenix is just the beginning of this long-term journey towards a better financial system, according to Ellipsis Labs.
In addition to its involvement with Ellipsis Labs, Paradigm is reportedly seeking to raise $750 to $850 million for a new fund. The cryptocurrency market’s strong performance in the first quarter of 2024 has attracted the attention of venture capital firms. For instance, Multicoin Capital, a venture capital firm, recently disclosed its leadership in a $225 million funding round for the cross-chain messaging protocol Wormhole.
Meanwhile, Ellipsis Labs is expanding its team and has posted job vacancies for engineers to join its New York office.
In conclusion, Ellipsis Labs has secured $20 million in funding, led by Paradigm, to further develop its DeFi technology stack. The company’s decentralized exchange, Phoenix, has achieved significant success and aims to bring the benefits of decentralized systems to traditional finance. Paradigm is also actively involved in raising funds for a new venture capital fund, reflecting the increasing interest in the cryptocurrency market.
