Paradigm Leads $20M Funding for Ellipsis Labs’ DeFi Expansion
Ellipsis Labs, a developer in the crypto exchange sector, has secured $20 million in Series A funding, with Paradigm leading the investment round.
According to a post on X, Electric Capital also participated in the round, with additional backing from Justin Drake and the Ethereum Foundation's Mike Nuder, Serrem Kanan from Eginlayer, Anatoly Yakovenko from Solana Labs, Uri Klarman from BloxRoot and others.
Ellipsis Labs is the developer behind Phoenix, a decentralized exchange (DEX) built on the Solana blockchain with an on-chain order book.
The funding raised by Ellipsis Labs will be used to further develop the decentralized finance (DeFi) technology stack.
In the year In August 2023, the company received $3.3 million in seed funding, with Electric Capital leading the investment round.
Phoenix is currently locked in a total market value (TVL) of $14.31 million and has seen a trading volume of $238.79 million in the last 24 hours. DefiLlama, a Web3 data tracker, ranks Phoenix as the eighth largest DEX on Solana based on TVL.
Phoenix achieved commercial settlements by eliminating the need for “cranks.” In blockchain ecosystems like Solana, Crank facilitates asynchronous trade settlements, allowing multiple transactions at once without waiting for each to complete before the next.
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Phoenix also provides comprehensive on-chain market event data, including limit orders, fills, and canceled orders, allowing users to access Phoenix's complete history of activity.
Ellipsis Labs emphasizes the importance of DeFi combining the benefits of decentralization with the liquidity and efficiency of traditional finance.
Crypto venture capital firm Paradigm – the lead investor – is said to be in talks to raise up to $850 million for a new fund. Paradigm is in talks with investors to raise between $750 million and $850 million as crypto markets have recovered in recent months.
If Paradigm completes the raise, it will be the largest since it announced $2.5 billion in funding in November 2021.
Paradigm led the new funding round aimed at raising the valuation of Merkle Manufacturing, the company behind social network Farcaster, to $1-billion. Paradigm's portfolio includes major crypto firms such as Coinbase, Blur, dYdX, Compound and Citadel Securities.
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