The modular liquidity protocol Elixir has raised $8 million in a Series B funding round, sending the company’s valuation to an impressive $800 million. The decentralized network enhances liquidity across orderbook exchanges.
The latest round was co-led by Mysten Labs and Maelstrom, with notable contributions from industry stalwarts such as Manifold, Arthur Hayes, Amber Group, GSR, Flowdesk, and others.
Why does it matter: For decades, centralized exchanges have dominated the trading landscape, relying on order books to match buyers with sellers in what is perceived as the most efficient trading mechanism. This method allows for direct interactions between traders, as opposed to the Automated Market Makers (AMMs) that facilitate trading through mathematical models and liquidity pools. However, as the decentralized exchange (DEX) sector grows, a shift towards adopting order book models has been evident, though not without its challenges, primarily due to liquidity constraints.
- Elixir’s modular network aims to dismantle these barriers by enabling users to supply liquidity to pairs on orderbook exchanges while simultaneously earning rewards.
- This initiative not only empowers exchanges to create trustless products but also significantly contributes to the liquidity of order books, as seen on platforms like Vertex, Bluefin, and RabbitX.
- Furthermore, Elixir is gearing up for native integrations with heavyweight exchanges such as dYdX, ApeX, and Hyperliquid, promising a broader impact on the market’s liquidity landscape.
Arthur Hayes, the Chief Investment Officer of Maelstrom and a pivotal figure in Elixir’s journey, highlighted its role in bolstering orderbook liquidity on major exchanges. With the mainnet launch on the horizon, Elixir’s network aims to redefine trading dynamics in the decentralized space.
The background: This latest Series B funding round follows Elixir’s Series A round in October 2023, which raised $7.5 million at a $100 million valuation. This round was led by Hack VC with participation from NGC Ventures, AngelList Ventures, Bloccelerate and angels from Ledger Prime, Genesis Trading and Hudson River Trading, among others. Prior to this Elixir raised $2.1 million in seed round in January 2023 from FalconX, Commonwealth, Chapter One, Ava Labs and BitMEX founder Arthur Hayes.
The next crypto unicorn: Elixir’s journey from a $100 million valuation in October 2023 to a staggering $800 million in its latest Series B round reflects the burgeoning demand for efficient on-chain trading environments. The company’s fundraising achievements, totaling over $17.6 million, underscore the crypto market’s robust activity, driven by factors like ETF introductions, the Bitcoin halving, and the increasing institutional and retail adoption of blockchain technology.
- Philip Forte, Elixir’s CEO, shared his enthusiasm for the network’s imminent mainnet launch and the Series B funding’s role in fortifying Elixir’s mission to be the cornerstone of liquidity for both Layer 1 and Layer 2 ecosystems.
- “This raise will further enable Elixir’s ambition to serve as the modular liquidity protocol powering Layer 1 and Layer 2 ecosystems, and the exchanges built on them,” Philip said.
Additionally, Elixir introduced Apothecary, a pre-mainnet feature aimed at engaging its community by rewarding users for their network contributions. Users can claim a welcome point drop by connecting with Elixir on social media, the company mentioned in a press release shared with AlexaBlockchain.
The bottom line: As Elixir strides towards its mainnet launch with bolstered financial backing and strategic partnerships, its vision of revolutionizing liquidity decentralized orderbook exchanges inches closer to realization.
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