DeFi Protocol Elixir Raises $7.5 Million in Series A Funding
Elixir, a decentralized finance (DeFi) protocol, has successfully closed a Series A funding round, raising $7.5 million at a valuation of $100 million. The funding will be used to improve liquidity across decentralized order book exchanges.
The round was led by Hack VC, with participation from NGC Ventures, AngelList Ventures, Bloccelerate, and various angel investors. Hack VC’s Managing Partner, Ed Roman, expressed excitement about investing in Elixir’s innovative solution for order book liquidity issues faced by DEXs and token projects.
Progress from Seed Round to Series A
This Series A funding follows Elixir’s seed round earlier this year, which raised $2.1 million. Notable investors in the seed round included FalconX, Commonwealth, Chapter One, Ava Labs, and BitMEX founder Arthur Hayes.
Elixir’s co-founder and CEO, Philip Forte, stated that the latest funding would enable the company to expand its team and accelerate the development of its protocol infrastructure to support additional use cases.
Addressing Liquidity Challenges in DeFi Order Book Exchanges
While centralized exchanges have traditionally favored order books for efficient trading environments, decentralized exchanges are increasingly adopting this model. However, limited liquidity remains a challenge.
Elixir aims to boost liquidity on order book-based DEXs by allowing users to directly supply liquidity to trading pairs and earn maker rewards. The protocol incentivizes deeper liquidity to create a more efficient trading environment with tighter spreads and increased volume.
Elixir’s Future Plans
Elixir’s delegated Proof-of-Stake protocol is expected to launch on mainnet soon and will integrate with decentralized exchanges like Vertex, Bluefin, and WooFi. Additionally, Elixir will power permissionless market features on dYdX V4 in early 2022.
Hot Take: Elixir’s Funding Boosts Liquidity in DeFi Order Book Exchanges
Elixir’s successful Series A funding round highlights the growing importance of liquidity in decentralized order book exchanges. With the support of prominent investors, Elixir is well-positioned to become a leader in improving liquidity and creating a more efficient trading environment within the DeFi space. As the protocol continues to develop and expand its partnerships with decentralized exchanges, it has the potential to address the liquidity challenges faced by traders and contribute to the overall growth and maturation of the DeFi ecosystem.
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