Cryptocurrency exchange developer Ellipsis Labs has raised $20 million in Series A funding led by venture firm Paradigm.
Electric Capital also participated in the round, with additional support from Justin Drake and Mike Neuder of the Ethereum Foundation, Sreeram Kannan of EigenLayer, Anatoly Yakovenko of Solana Labs, and Uri Klarman of bloXroute. Ellipsis Labs will use the funds to continue developing its DeFi technology stack.
Ellipsis Labs develops Phoenix, Solana’s on-chain order book decentralized exchange. “Ellipsis Labs started building better on-chain liquidity fundamentals 1.5 years ago.” said On social media platform X, Phoenix combines “the efficiency of order books with the accessibility and transparency of DeFi,” he added.
The company previously raised $3.3 million in seed funding led by Electric Capital in August 2023.
phoenix dex
Phoenix has a total total value locked (TVL) of $14.31 million and recorded a trading volume of $238.79 million in the last 24 hours. According to web3 data tracker DeFiLlama, it is the 8th largest Solana DEX in terms of TVL.
Phoenix settles the deal immediately by avoiding “cranks”. For blockchain ecosystems, especially Solana, Crank allows for asynchronous transaction settlement, which allows many transactions to occur simultaneously, eliminating the need for a transaction to complete for the next transaction. Crank provides high throughput and low latency, i.e. the time between transaction initiation and completion. However, cranking adds complexity to the system and reduces predictability.
Phoenix also provides all market event data on-chain, such as limit orders, filled and canceled limit orders, allowing users to see a complete history of Phoenix activity.
“The next phase of DeFi must apply the advantages of decentralized systems—accessibility, transparency, and auditability—to the liquidity and efficiencies that exist only in traditional finance today,” Ellipsis Labs said in a statement Thursday. “Phoenix is just the first step on a long-term path to a better financial system.”
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