Ellipsis Labs Raises $20M to Develop Solana Decentralized Exchange

Roman Janson Follow Apr 04, 2024 · 1 min read
Ellipsis Labs Raises $20M to Develop Solana Decentralized Exchange
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Decentralized exchange developer Ellipsis Labs has closed a $20 million Series A funding round led by crypto venture firm Paradigm, according to a report by The Block. Electric Capital also participated, along with investors from the Ethereum Foundation and Solana Labs.

As the article outlines, Ellipsis Labs develops Phoenix - an on-chain order book DEX built for the Solana blockchain. With $14.31 million in total value locked, Phoenix currently ranks as the eighth largest Solana DEX by this metric. The platform instantly settles trades without relying on “cranks” to asynchronously process transactions.

Cranks are commonly used on blockchains like Solana to provide high throughput by allowing multiple transactions to occur before finalizing earlier ones. However, this adds complexity and reduces predictability. In contrast, Phoenix settles trades instantly while maintaining on-chain order books for transparency.

The funding will support continued development of Ellipsis Labs’ DeFi technology stack. In a statement, the company emphasized its goal of bringing the advantages of decentralized systems like accessibility and transparency to the liquidity and efficiency of traditional exchanges. Phoenix represents the first step towards a “better financial system” through its hybrid approach.

This round follows Ellipsis Labs’ $3.3 million seed raise led by Electric Capital last August. It marks a vote of confidence from investors in the startup’s vision and progress so far in building out its DEX. Paradigm’s participation in particular underscores growing institutional interest in supporting promising blockchain infrastructure projects.

As more activity moves to decentralized protocols, innovative DEX models like Phoenix that improve on user experience could see greater adoption. The funding will help Ellipsis Labs further optimize its platform’s design to capture market share as the Solana ecosystem continues expanding. Overall, the round highlights the ongoing maturation of the decentralized exchange space beyond initial concepts.

Written by Roman Janson Follow
Senior News Editor at