Ellipsis Labs, a company specializing in the development of crypto exchanges, has successfully concluded a $20 million Series A funding round with leading support from the venture firm Paradigm.
The official announcement reveals that additional backers in this funding round include the venture firm Electrical Capital, along with notable figures such as Sreeram Kannan from EigenLayer, Anatoly Yakovenko from Solana Labs, Uri Klarman from bloXroute, and Justin Drake and Mike Neuder from the Ethereum Foundation, among others.
In August 2023, the company had previously raised an additional $3.3 million from Electric capital.
Ellipsis Labs, known for its Solana-based decentralized exchange (DEX) Phoenix, plans to utilize the raised capital to advance its decentralized finance (DeFi) technology stack.
According to the company, Phoenix ranks among the “top 5 spot dex” across all blockchains in terms of daily volume, boasting a total value locked (TVL) of $14.31 million at present. The platform recorded a trading volume of $238.79 million over the past 24 hours.
According to Ellipsis, Phoenix streamlines trades by eliminating the need for a “crank.” This approach enables asynchronous trade settlements, allowing blockchains to execute multiple transactions simultaneously without waiting for the finality of preceding transactions.
“The next phase for DeFi must combine the benefits of a decentralized system — accessibility, transparency, and auditability — with the liquidity and efficiency currently found only in traditional finance. Phoenix represents just the initial stride on the long journey toward a more robust financial system,” stated the exchange developer.
Additionally, the company is expanding its team and has announced job vacancies for engineers to join its New York office.
Meanwhile, venture capital firm Paradigm’s involvement extends beyond Ellipsis Labs. Reports suggest that the firm is aiming to raise between $750 and $850 million for a new fund.
With the cryptocurrency market witnessing a strong start in the first quarter of 2024, VC firms are increasingly participating. In the broader market, venture capital firm Multicoin Capital revealed on April 4 that it spearheaded a $225 million funding round in the cross-chain messaging protocol Wormhole last year.
