Ellipsis Labs, a specialized firm in developing crypto exchanges, recently closed a $20 million Series A funding round led by venture firm Paradigm. Other backers included Electrical Capital, Sreeram Kannan from EigenLayer, Anatoly Yakovenko from Solana Labs, Uri Klarman from bloXroute, Justin Drake, and Mike Neuder of the Ethereum Foundation, among others.

The firm, which launched 1.5 years ago with the goal of enhancing on-chain liquidity primitives, introduced its first protocol, PhoenixTrade, a fully on-chain order book on Solana. This protocol combines the efficiency of order books with the accessibility and transparency of DeFi.

In August 2023, Ellipsis Labs secured an additional $3.3 million from Electric Capital. The funds raised will be utilized to advance its decentralized finance (DeFi) technology stack. Phoenix, the Solana-based DEX developed by Ellipsis Labs, is considered a top 5 spot dex in terms of daily volume across all blockchains, with a total value locked (TVL) of $14.31 million and a trading volume of $238.79 million in the past 24 hours.

Phoenix eliminates the need for a “crank” in settling trades, allowing for asynchronous trade settlements without waiting for transaction finality. The exchange developer emphasizes the importance of bringing the benefits of a decentralized system to the liquidity and efficiency of traditional finance to create a better financial system.

Ellipsis Labs is currently expanding its team and seeking engineers to join its New York office. Meanwhile, venture capital firm Paradigm is looking to raise between $750 and $850 million for a new fund.

In the first quarter of 2024, the cryptocurrency market showed promising growth, attracting interest from VC firms. Multicoin Capital, for example, led a $225 million funding round in the cross-chain messaging protocol Wormhole last year.

As the cryptocurrency market continues to evolve, firms like Ellipsis Labs are at the forefront of innovation in DeFi and blockchain technology. Stay updated with more news and developments on Global Crypto News.

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