The startup that built the decentralized exchange and the cross-chain infrastructure that facilitates communication between Layer 1 and Layer 2 blockchain solutions is the latest startup backed by Coinbase Ventures.
Singapore-based Router Protocol raised $ 4.1 million in strategic funding rounds from Coinbase Ventures, Alameda Research, Polygon, Woodstock, QCP, De-Fi Capital, Maple Block, TeraSurge Capital, Wintermute and Shima Capital on Friday. Was announced. Several entrepreneurs. The startup also raised $ 485,000 in last year’s seed round.
In recent years, the number of Layer 1 blockchain networks trying to solve similar problems has skyrocketed. As these Layer 1 projects gain momentum, you can attract a community of developers building Layer 2 solutions on top of your favorite blockchain.
“Blockchain is like a city and can grow indefinitely, but no one goes there unless you build the infrastructure,” said Ramani Ramachandran, Founder and Chief Executive Officer of Router Protocol, TechCrunch. Said in an interview with. “That is, all these blockchains have emerged, but there is no connection between them. That was the origin of the router protocol,” he said.
Router protocolFounded last year, is betting that many of these Layer 1 blockchain networks will continue to operate and more will join the battle. Its offering allows developers to seamlessly move liquidity between chains. “There are probably about 50 blockchains, 50 different communities and unique energies,” he said.
“There are Layer 1 scaling solutions (polygons of the world) and” Ethereum killers “such as Aave and Solana, and non-EVM players such as Terra and Algorithm are emerging from different perspectives. You marry it with the abundance of cosmic capital. All of these players have large war chests. No one is talking about war chests under $ 1 billion. The battle will not end soon. “
Another product of the router protocol is Dfyn. This is a distributed exchange like Uniswap or Pancake Swap built on top of Polygon. “It’s like there are a lot of airport terminals called Dfyn and there are airline routes connecting these Dyfn networks. But they also connect to other airports. That’s the beauty of the whole model. “
Rama Chandran said he expects cross-chain solutions to grow in popularity next year. “Imagine you are using a Solana blockchain and want to sell Ethereum, but the Binance smart chain is a much cheaper price. With a router, you have one Binance Smart Chain. You can get it at the best price with a click and get it back to the native blockchain Solana, “he said.
Trading is the most common use case for router protocols today, but Rama Chandran said he expects more applications to emerge in the future. “Speaking across borders allows you to not only trade, but also borrow, lend, and do cross-chain governance. For example, sushi has 15 chains and 15 different communities. 15 different snaps. It’s a nightmare to get community votes across these chains because we need to make shots. That’s what we can solve. You can borrow from one chain and lend it to another. ” He said.
The company said it plans to invest capital and invest in multiple security audits to expand its product offerings.
Communicating blockchains effectively with each other is the Holy Grail of DeFi in the future, and we are pleased to work with the team behind Router & Dfyn to support a unique approach to solving this problem. ” Said Darius Sit, co-founder of QCP. With capital, statement.
“We anticipate future Web 3.0 activity across several versatile and application-specific blockchains. Router XCLP is a key cross-chain infrastructure that enables liquidity flows between chains. It’s a solution. We’re happy to support and support the router team’s efforts in this direction. “
Coinbase Ventures backs cross-chain infra Router Protocol – TechCrunch Source link Coinbase Ventures backs cross-chain infra Router Protocol – TechCrunch