Rollup platform Radius has raised $7 million in seed financing led by crypto-focused venture firm Pantera Capital, according to a company release.
Radius is developing a decentralized network called Lighthouse. This tool converts Maximum Extractable Value (MEV), a type of financial interest that manipulates blockchain transaction orders, into a roll-up revenue source, eliminating the need to rely on transaction fees. Radius plans to use the funds to continue building out its economic infrastructure rollout.
“MEV is additional economic value that can be extracted from block production. While some types of MEV, such as transaction reordering, can be harmful, other forms of good MEV (background arbitrage) actually improve market efficiency and allow the ecosystem to function better. It helps make it work.” the company wrote in a January 23 release. “This is where Radius comes in. We help Rollup unlock good MEVs and turn them into sustainable revenue streams. With this new model, Rollup overcomes high L1 costs and limited fee income and provides unprecedented growth opportunities. can be unlocked.”
Radius isn’t the only platform capitalizing MEV. In December 2024, Solana-based liquid staking protocol Marinade Finance talked about introducing a governance proposal that would fairly redistribute MEV rewards on Block, as previously reported.
Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Poresight Ventures is the majority investor in the block. Forecast Ventures invests in other companies in the crypto space. Crypto Exchange Bitget is the Anchor LP of Prediction Ventures. The block continues to operate independently to provide objective, impactful and timely information about the crypto industry. Below are our current financial disclosures.
© 2024 Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial, or other advice.
Author information
MK Manoylov has been a journalist for the Bloc since 2020. Just before Bitcoin surpassed $20,000 for the first time. Since then, MK has written nearly 1,000 articles for the publication, covering all things crypto news, but with a tendency toward NFTs, Metaverse, Web3 Gaming, fundraising, crime, hacking, and crypto ecosystem stories. MK has a graduate degree from New York University’s Science, Health, and Environmental Reporting Program (SHERP) and has covered health topics for WebMD and Insider. x You can follow MK at @mmanoylov and on LinkedIn.
who are we
The Block is a news provider striving to be the first and definitive world of digital asset news, research and data.
Follow us on Google News