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 Financialย resources. Other participants in the round include Elevation Financialย resources, StarkWare, Spartan Group, Goodwater Financialย resources, Upsparks Ventures, and Protofund Ventures.
According to Pantera Financialย resources Managing Partner Paul Veradittakit, Brine Fi addresses critical obstacles that hinder institutional and mainstream adoption in decentralizedย financeย (DeFi). He emphasizes the need for a self-custodial execution layer that is quicker, 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 cryptocurrency 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 Fiโs order book platform has attracted $575,000 in total value locked and boasts a volumeย ofย dailyย trading of $1 to $3 Million, according to DeFiLlama data.
Zero-Knowledge Transaction Privacy
Brine Fi utilizes zero-knowledge proofs, powered by Ethereumย (ETH) growing 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 sliding victim to frontrunning.
Inย addition, Brine Fi offers gasless trades with zero transaction fees. Traders only need to pay a trading fee of 0.05%.
Challenges in Cryptocurrency Deal Financialย resources Funding and DEX Trading Volume
Regardlessย of a decline in deal financialย resources funding for the cryptocurrency industry for the fourth consecutive 30ย days in August, Brine Fi managed to secure wholeย lotย of funding. Theย previousย 30ย days, total deal funding for cryptocurrency 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 quicker rate since May. In August, DEX volume accounted for less than 15% of centralized exchange spot trade volume.
Hot Take: Brine Fiโs Innovative Approach to DEX Trading
Brine Fiโs 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 quicker, more private, and cost-effective trading experience. Its capacity to address challenges such as frontrunning and highย charges sets it apart from other DEX platforms. As the cryptocurrency industry navigates the changing landscape of deal financialย resources funding and trading volumes, Brine Fi distinguished as an innovative solution for traders looking for a reliable and user-friendly DEX.
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