Brine Fi Raises $16.5 Million in Series A Funding
Brine Fi, a decentralized exchange (DEX), has successfully secured $16.5 million in a Series A funding round led by Pantera Capital. Other participants in the round include Elevation Capital, StarkWare, Spartan Group, Goodwater Capital, Upsparks Ventures, and Protofund Ventures.
According to Pantera Capital Managing Partner Paul Veradittakit, Brine Fi addresses crucial obstacles that hinder institutional and mainstream adoption in decentralized finance (DeFi). He emphasizes the need for a self-custodial execution layer that is faster, more reliable, user-friendly, and cost-effective.
As an order book-based spot DEX, Brine Fi allows users to directly execute trades with other traders on the blockchain while retaining full custody of their crypto assets. This approach differs from the prevalent automated market maker DEX model that relies on liquidity pool smart contracts.
Since its launch two weeks ago, Brine Fi’s order book platform has attracted $575,000 in total value locked and boasts a daily trading volume of $1 to $3 million, according to DeFiLlama data.
Zero-Knowledge Transaction Privacy
Brine Fi utilizes zero-knowledge proofs, powered by Ethereum scaling developer StarkWare, to combat frontrunning and enable transaction privacy. Frontrunning occurs when another trader executes an order first at a more favorable price due to the transparency of onchain transactions. By incorporating zero-knowledge technology, Brine Fi allows traders to execute high-volume orders without falling victim to frontrunning.
Additionally, Brine Fi offers gasless trades with zero transaction fees. Traders only need to pay a trading fee of 0.05%.
Challenges in Crypto Venture Capital Funding and DEX Trading Volume
Despite a decline in venture capital funding for the crypto industry for the fourth consecutive month in August, Brine Fi managed to secure significant funding. Last month, total venture funding for crypto startups fell below $500 million, reaching the lowest point in over two years.
Both centralized exchange volume and DEX volume have experienced a decrease, but DEX volume has declined at a faster rate since May. In August, DEX volume accounted for less than 15% of centralized exchange spot trade volume.
Hot Take: Brine Fi’s Innovative Approach to DEX Trading
Brine Fi’s successful funding round and unique features highlight the demand for a self-custodial execution layer in DeFi. By combining order book-based trading, zero-knowledge proofs, and gasless trades, Brine Fi offers users a faster, more private, and cost-effective trading experience. Its ability to address challenges such as frontrunning and high fees sets it apart from other DEX platforms. As the crypto industry navigates the changing landscape of venture capital funding and trading volumes, Brine Fi stands out as an innovative solution for traders looking for a reliable and user-friendly DEX.
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