France-based decentralized exchange aggregator, ParaSwap, raises $2.7 million in a seed funding round from some of the top investors across the crypto ecosystem. The funding is set to boost API integration and development in a bid to enhance the building of decentralized finance (DeFi) applications.
The seed funding round welcomed over 30 top firms in the crypto industry including Coingecko, a crypto data aggregator; Blockchain Capital, a crypto-related venture capital firm, Arrington’s XRP Capital and a list of top influencers in the space. Stani Kulechov, founder of DeFi platform Aave and Arthur Cheong, founder of DeFiance Capital were part of the individual investors who participated in the round.
Mounir Benchemled, founder and CEO of Paraswap stated the new funding will enable building of bridges between multiple decentralized finance applications. Additionally, Paraswap will scale its API infrastructure allowing millions of users to seamlessly integrate its aggregator. Benchemled further highlighted the need for simpler solutions for DeFi users stating:
“It is an indicator that the DeFi market needs more than simple user interfaces for swaps. It needs projects that help build solid industry standards.”
ParaSwap is a liquidity aggregator that helps users find the best token prices on order through a routing process across major DEXes such as Uniswap, Bancor, Kyber Network and 0x. Differentiating its role from 1inch.exchange, Mounir explained Paraswap as an API which is also used by the aggregator’s UI and other users “while 1inch is a UI and they have an API on the side.”
Since launch in 2019 as a DEX, ParaSwap has pivoted its business to creating APIs that provides an easy-to-use and efficient entry point for DeFi application, traders and developers.
On the seed funding round, Benchemled stated two major reasons that made investors choose ParaSwap. First, he attributed the investment to ParaSwap’s growing client base saying:
“We were also able to attract some tier 1 dapps and wallets in the ecosystem.”
Finally, with only 3 employees (increased to 10 in the past three weeks), ParaSwap has been able to deliver with very minimal resources, he stated. “ParaSwap has been a one man army most of the time and since March, we out competed most of the old and well-funded projects.”