Swaap Labs, a Next-Generation Market Making Protocol, has raised over $4.5 million in a seed funding round led by Signature Ventures, an early-stage VC fund investing in Web3 technology.
Swaap leverages a combination of oracles and dynamic spread to offer liquidity providers (LPs) passive and profitable market-making strategies. The protocol aims to address the critical issue of impermanent loss, which is prevalent in DeFi.
Swaap v1 was launched in July 2022 on Polygon and has already proven that profitable market-making on-chain is possible. Its WBTC / WETH / USDC pool, powered by Chainlink price feeds, has recorded less than 0.1% of impermanent loss. Swaap v2 is set to revolutionize the DeFi landscape with its new enhancements and features, which further improve upon v1.
Apart from the lead investor Signature Ventures, the Swaap Labs’ seed funding round also witnessed participation from high-profile investors including New Form Capital, C² Ventures, Kima Ventures, Pareto Ventures, Entrepreneur First, and renowned business angels like Julien Bouteloup (Stake Capital), Pascal Gauthier (Ledger CEO), Richard Ma (Quantstamp CEO), Tegan Kline (The Graph), Meltem Demirors (Coinshares CSO), Frederic Montagnon (Arianee Co-Founder), and Thibaud Elzière (eFounders CEO).
Swaap Labs told AlexaBlockchain that the secured funding will allow the firm to expedite the development and launch of Swaap v2, providing even greater benefits to liquidity providers and traders in the DeFi ecosystem.
Cyrille Pastour, Swaap Labs Co-founder, said: “This funding will enable us to accelerate the development and release of Swaap v2, which promises to deliver even more value to LPs and traders in the DeFi ecosystem.”
Swaap v2 features advanced market-making models in DeFi, utilizing the AMM simulator developed in collaboration with the prestigious Louis Bachelier Institute. Moreover, it showcases a groundbreaking architecture that enhances data latency, significantly improving the platform’s overall performance.
Dr. Georg (Juri) Stricker, Tech Partner at Signature Ventures, praised Swaap Labs, emphasizing Swaap’s potential to revolutionize DeFi with its Market Maker protocol.
According to Dr. Stricker, Swaap’s innovative approach builds upon the progressively more scalable public chain infrastructure and transparent and robust oracle infrastructure, setting new standards for DEX efficiencies that benefit both liquidity providers and traders.
“The protocol’s ability to offer stable yields and sustainable returns has the potential to become an essential building block in the evolution of DeFi towards a financial system,” Dr. Stricker noted.
Dr. Stricker’s comments reflect Swaap’s exceptional approach in addressing the critical issue of impermanent loss in DeFi, providing liquidity providers with passive and profitable market-making strategies. Swaap’s v2 release promises to take this a step further, employing the most advanced market-making models in DeFi while showcasing innovative architecture that delivers significant improvements in data latency.
Swaap’s efforts have positioned the platform as a leading player in the DeFi space, with the potential to bring about far-reaching changes in the sector.
You can join Swaap’s v2 waitlist at swaap.finance/waitlist to access the new platform early and enjoy exclusive benefits.
Read Also: Rysk Finance Secures $1.4M Led by Lemniscap for On-Chain Market Making in DeFi Derivatives