Ellipsis Labs secures $20 million in Series A funding

Ellipsis Labs, a cryptocurrency developer, has secured $20 million in Series A funding led by Paradigm, with additional support from Electric Capital. Notable participants in the investment round include Justin Drake and Mike Neuder from the Ethereum Foundation, Solana co-founder Anatoly Yakovenko, Sreeram Kannan from EigenLayer, and others. This funding will fuel the advancement of Ellipsis Labs’ decentralized finance (DeFi) technology stack, specifically its Phoenix decentralized protocol built on the Solana blockchain. With a total value locked of $14.31 million and a significant trading volume, Phoenix has experienced great success in the DeFi space. Ellipsis Labs aims to combine the benefits of DeFi with liquidity and efficiency from traditional finance, reflecting the growing demand for innovative financial solutions.

Ellipsis Labs secures $20 million in Series A funding

Cryptocurrency developer Ellipsis Labs has successfully completed a Series A funding round, securing $20 million. The investment round was led by Paradigm, a prominent investor in the crypto space, with additional support from Electric Capital. Notable figures in the industry, including Ethereum Foundation’s Justin Drake and Mike Neuder, Solana co-founder Anatoly Yakovenko, and EigenLayer’s Sreeram Kannan, also participated in the funding round.

Background

Ellipsis Labs is the creator of the Phoenix decentralized protocol, which is built on the Solana blockchain. The funding secured in the Series A round is intended to further advance the company’s decentralized finance (DeFi) technology stack.

Investment round details

In the Series A funding round, Ellipsis Labs raised $20 million. The funds were provided by Paradigm and Electric Capital. The timeline of the funding round is yet to be disclosed.

Major investors

The lead investor in the Series A funding round was Paradigm, a well-known investor in the cryptocurrency space. Electric Capital also provided additional support. The participation of industry figures such as Justin Drake, Mike Neuder, Anatoly Yakovenko, and Sreeram Kannan further highlights the significance of Ellipsis Labs and its Phoenix protocol.

Funding purpose

The $20 million secured in the Series A funding round will be utilized to advance DeFi technology within Ellipsis Labs. The company aims to enhance its decentralized finance technology stack and focus on specific areas of development and innovation within the industry.

Previous funding round

Prior to the Series A funding round, Ellipsis Labs successfully closed a funding round led by Electric Capital in 2023. The round resulted in a $3.3 million investment. This previous round laid the foundation for the company’s growth and paved the way for the subsequent Series A funding.

DeFi protocol stats

The Phoenix decentralized protocol, developed by Ellipsis Labs, currently has a total value locked (TVL) of $14.31 million. The protocol has generated a trading volume of approximately $238 million in the last 24 hours. According to DefiLlama data, Phoenix ranks 8th among decentralized exchanges on the Solana blockchain. This achievement reflects the success and adoption of the Phoenix protocol within the DeFi space.

Phoenix’s success on Solana

The Phoenix protocol offers unique advantages in trade settlement, eliminating the need for a crank. In some blockchains, a crank is required to facilitate multiple trade settlements simultaneously. Phoenix also provides users with access to on-chain market data, enabling them to track and analyze the exchange’s activity history. These features have contributed to the protocol’s success and its recognition as a trusted entity within the DeFi space.

Key features of Phoenix protocol

One of the key features of the Phoenix protocol developed by Ellipsis Labs is the elimination of the crank for trade settlements. By removing the need for a crank, the protocol enhances efficiency and streamlines the settlement process for users. Additionally, the protocol offers access to on-chain market data, empowering users with insights and information to make informed decisions within the DeFi ecosystem.

Combining DeFi and traditional finance

Ellipsis Labs aims to bridge the gap between the decentralized finance sector and traditional finance by harnessing the benefits of both realms. By leveraging the liquidity, efficiency, and innovation of DeFi with the stability and established practices of traditional finance, the company seeks to create a sustainable and inclusive DeFi ecosystem.

Paradigm’s fundraising plans

Paradigm, the lead investor in Ellipsis Labs’ Series A funding round, is reportedly in discussions to raise approximately $850 million for a new fund. This fundraising effort comes following the recovery of the crypto market and showcases Paradigm’s confidence in the industry’s future potential. If successful, this would be Paradigm’s largest raise since November 2021 when it secured $2.5 billion during the peak of the bull run. Paradigm is also involved in supporting Merkle Manufactory, the parent company of Farcaster, in a funding round to push its valuation close to $1 billion.

In conclusion, Ellipsis Labs’ successful Series A funding round, led by Paradigm with participation from Electric Capital and notable industry figures, highlights the growing interest and investment in the DeFi space. The funding will allow Ellipsis Labs to further advance its Phoenix protocol and contribute to the development of the decentralized finance sector. With the combination of DeFi and traditional finance, the company aims to create a sustainable and inclusive ecosystem that benefits users and stakeholders alike. As Paradigm continues to pursue its fundraising plans, the crypto industry can anticipate further growth and advancements in the coming years.