Cryptocurrency developer Ellipsis Labs has finalized a Series A funding round, securing $20 million. According to its post on X (formerly Twitter), the investment round was led by Paradigm with additional support from Electric Capital. Other participants include Ethereum Foundation’s Justin Drake and Mike Neuder, Solana co-founder Anatoly Yakovenko, EigenLayer’s Sreeram Kannan, and a few others.
Ellipsis Labs secures $20 million for DeFi advancements
Ellipsis Labs is the brain behind the Phoenix decentralized protocol that has its order book built on the Solana blockchain. In its statement, Ellipsis mentioned that the funding will aid in the advancement of its decentralized finance (DeFi) technology stack.
Before this funding round, the developer finalized a funding round led by Electric Capital in 2023, netting an investment of $3.3 million. Ellipsis Labs’ DeFi protocol Phoenix presently has a total value locked (TVL) of $14.31 million, boasting about $238 million in trading volume in the last 24 hours. According to DefiLlama data, Phoenix currently ranks in 8th position among decentralized exchanges on Solana. Phoenix has been able to achieve much success due to impressive services in the DeFi space.
Phoenix’s success and future plans
Decentralized exchange Phoenix allows users to settle their trades by removing their need for a crank. In some blockchains, a crank is needed to carry out several trade settlements at the same time, allowing multiple transactions without the need to wait for one to finish before the next. Aside from that, the protocol also provides several on-chain market data features, paving the way for users to access the exchange’s activity history.
Ellipsis Labs has been emphasizing on the need to combine the benefits of the decentralized finance sector with the liquidity and efficiency in the traditional finance industry. On its own, Paradigm is in talks to raise about $850 million for a new fund. Paradigm is looking to raise this fund after the impressive recovery of the crypto market.
If the firm succeeds in raising the funds, this will be its largest raise since November 2021, when it raised $2.5 billion during the peak of the bull run cycle. Paradigm is also involved in helping the parent company of Farcaster, Merkle Manufactory in a new funding round push its valuation close to $1 billion.
