Clover Finance Raises $3M in Seed Funding; Bringing Ethereum DeFi Apps to Polkadot

Clover Finance Raises $3M in Seed Funding; Bringing Ethereum DeFi Apps to Polkadot

  • Clover Finance, a Polkadot parachain, completes a $3 million seed round funding to launch a developer-friendly framework for DeFi applications to move from Ethereum to Polkadot.
  • Additionally, Clover Finance will also create a two-way peg for Bitcoin and Ethereum blockchains.

Clover Finance, a cross-chain compatibility parachain on Polkadot, completed a $3 million seed funding round led by top firms including Polychain Capital, Hypersphere, Bithumb Global Divergence Ventures, a Medium blog post reads. The firm aims to use the funding to provide easy-to-access infrastructure for developers and a “one-stop EVM-compatible framework” enabling Ethereum-based decentralized finance (DeFi) applications to move to Polkadot.

This places Clover Finance in a tight race with MoonBeam Network and DeFi ecosystem Acala, who recently announced solutions to enhance Ethereum Virtual Machine (EVM) compatibility on Polkadot.

The seed round funding will also enhance and accelerate product development, expand the Clover Finance ecosystem and improve partnerships with other firms in the crypto space. This targets providing a more user-friendly platform fostering the adoption of blockchain technology and DeFi across developers and end-users.

Notwithstanding, Clover Finance is planning a future bridge with Bitcoin and Ethereum. Adding to its innovations such as gas redistribution, gasless transactions, and identity-based fee-schedule (which measures gas according to the frequency of transactions), Clover Finance will launch “trustless 2-way pegs between Ethereum and Bitcoin”.

The two-way pegs for Bitcoin, still at the infancy stage, will use new technology, a built-in SPV chain simulation, to connect two blockchains. The technology provides the “possibility to natively inspect a Bitcoin or Ether transaction without storing/ verifying the entire blockchain history.” Polychain general partner Tekin Salimi said,

“One of the challenges prior Bitcoin-Ethereum bridge attempts faced was in Bitcoin’s limited scripting language. We think the Bitcoin/Ethereum bridge is the most interesting feature, as it’s unique to Clover.”

However, the two-way pegs heavily depend on successful implementations and changes on the Bitcoin core network.

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Author: Lujan Odera

Crypto Business Banking Startup, Multis, Raises $2.2M Backed by Coinbase & Y Combinator

Multis, a French-based business banking startup, has raised $2.2 million in its seed fund round that attracted industry giants, including Coinbase Ventures, Digital Currency Group, Y Combinator, and White Star Capital. The firm’s operational niche is building business bank accounts that allow clients to send, receive, and manage cryptocurrencies.

According to Multis Co-founder and CEO, Thibaut Sahaghian, crypto management is pretty complicated for prospectus companies that may wish to leverage digital payments,

“It’s very complicated to manage crypto as a company. As soon as you want to hold crypto or start paying employees and contractors, it’s a giant mess.”

However, Multis, which runs software as a service (SaaS) product suited for corporate teams, solves this challenge through its crypto-oriented business bank account. The Multis bank accounts leverage a multi-sig wallet based on Ethereum blockchain; this design allows the addition of other team members and the setting of fundamental guidelines.

Notably, Multis does not control clients’ keys, which means that the firm has no authority to block transactions or review the same. Sahaghian noted that their approach as a non-custodial crypto service provider eliminates a considerable amount of regulatory risk,

“From a regulatory point of view, it’s been very useful because we don’t hold assets and we can’t review and block transactions.”

The Multis business bank accounts also support stablecoins such as DAI and USDC; this means that clients can eliminate crypto volatility by holding their assets in the form of ERC-20 stablecoins. In addition to this, Multis provides an avenue to yield DeFi returns through Compound protocol.

Currently, a good part of Multis clients fall in the blockchain and crypto space, but the firm is looking to expand this market share with the integration of EUR and USD accounts via IBANs and cards. The firm has since expressed optimism in providing centralized management for crypto transactions; TechCrunch highlighted,

“Multis could act as a bridge between fiat currencies and cryptocurrencies. Companies with offices in multiple countries could use it to save money on intercompany fees.”

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Author: Edwin Munyui

Decentralized Exchange Aggregator, ParaSwap, Raises $2.7M to Streamline DeFi Token Swaps

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.”

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Author: Lujan Odera

DEX Aggregator 1inch Secures $2.8M Funding While its AMM Mooniswap Locks $5.5M

DEX aggregator 1inch has secured $2.8 million in an external seed funding round led by Binance Labs. Other investors included Galaxy Digital, FTX, Dragonfly Capital, Greenfield One, Libertus Capital, IOSG, Divergence Ventures, and LAUNCHub Ventures along with Kyber Network founder Loi Luu and NEAR protocol founder Illia Polosukhin. Binance CEO Changpeng Zhao (CZ) said,

“DEX aggregation is a critical building block that co-enabled the most recent DeFi boom. It allows executing large order sizes at low slippage rates. 1inch has become the de facto interface for trade execution in DeFi.”

Launched last year at the ETHGlobal hackathon, 1inch is a liquidator aggregator that connects multiple DEXs to help execute trades at better prices. The firm is founded by the CEO Sergey Kuntz, a software engineer at Porsche and CTO Anton Bukov, former smart contract developer at NEAR blockchain.

Providing swaps between ERC20 tokens, the platform pulls liquidity from DEXs like Uniswap, Bancor, and Kyber.

Currently, it is facilitating about $65 million in daily trades, as per CoinGecko, and has recorded a total of more than $1 billion. It also has 17,700 wallets registered on its website with more than 1,200 daily active in July.

Just this week, the DEX aggregator launched its own automated market maker (AMM) called Mooniswap. AMMs are liquidity pools that allow users to switch between tokens.

Some AMM models, however, cause high slippage resulting in losses for liquidity providers and traders. 1inch plans to lower these impermanent losses with Mooniswap by introducing a 5-minute time delay for arbitrageurs. 1inch expected this to result in 50% to 200% more profits for LPs than Uniswap V2.

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Author: AnTy

Visa Partner Non-Custodial Lightning Network Wallet Zap Secures $3.5M Funding

The non-custodial Lightning Network wallet Zap has closed a $3.5 million seed round led by Green Oaks Capital, which previously backed Robinhood and Stripe. Morgan Creek co-founder Mark Yusko and Anthony Pompliano also joined the round.

This big development came just months after the payment startup partnered with Visa. Zap currently employs 13 people from all over the world.

Jack Mallers founded zap, and before, the Maller family funded April. Jack’s grandfather helped found the Chicago Board of Exchange (Cboe) and then co-founded First American Discount Corporation with his son.

The core of the product Lightning Network is the second layer of bitcoin, which enables faster and cheaper transactions.

With this open-source non-custodial wallet, users’ don’t even know they are using bitcoin as they use dollars.

“One of the early use cases for us is content creators. Journalists or video game streamers or adult film actors and actresses, put up profiles backed by our infrastructure, and anyone in the world can tip them,” Mallers, 26 told Forbes.

Zap launched its flagship product Strike, a Lightning native neo-bank that addresses pain points for the mass adoption of crypto. In June, the company announced it was admitted to Visa’s Fast Track program and would be launching its card within a year. Strike rewards and Strike merchant tools would also be coming shortly, he said.

Twitter and Square co-founder Jack Dorsey who is a bitcoin advocate have also taken an interest in Lightning with investing in Lightning Labs, the leading developer of Lightning Network.

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Author: AnTy

Incentivized Web3 Data Privacy Project, HOPR, Raises $1 Million Led by Binance Labs

Binance Labs, the incubation venture of Binance exchange, led a seed funding round of $1 million for decentralized privacy-focused HOPR. Apart from Binance Labs, other firms that invested during the seed funding round include Focus Labs, Spark Digital Capital, Caballeros Capital, and Synaitken. BinanceX, an early stage development platform, has also awarded a fellowship to the startup earlier.

HOPR is a privacy centered blockchain startup that incentivizes the data through a token-incentivized mixnet solution.

Gin Chao, Binance’s Strategy officer, said that the team at BinanceX and HOPR have been working on this privacy solution for quite some time now. He said:

“The team from BinanceX met HOPR over a year ago at Paris Blockchain Week, and we have got to know the team. We will be making much fewer investments, and these are the sorts of projects we will be focused on, in areas that we feel have a sort of immediate product-market fit.”

HOPR is also set to become a Decentralized Autonomous Organization (DAO) under the law in Switzerland and has the right set of tools to become a pioneer in decentralized privacy management. Chao said:

“I think it’s the right type of problem to be solving at this time, and HOPR’s solution is a great fit in terms of the ethos of blockchain and having an eventual decentralized organization with a token to address the problem.”

HOPR a New Network Layer Protocol For Safe Exchange of Data

Sebastian Bürgel, the co-founder of HOPR, said that their protocol is not another on-chain privacy solution but a network layer protocol similar to Tor, which facilitates a safe exchange of private data. HOPR would incentivize the participants with the native token to enhance the privacy of the network.

In a traditional system, when two systems are communicating with each other, they are confidential to third parties like telcos and internet service providers (ISPs). On the other hand, in the HOPR system, the data moves from one relay node to another, and each receiving node mixes the data with other traffic, and then it is passed on to the next node.

“Anybody can participate and be paid for the service of relaying traffic and thereby creating privacy for you,” said Bürgel. “You are paid in HOPR tokens similar to how miners get paid ETH on Ethereum.”

He further commented on the incentivization of the network participants suggesting right now it’s quite challenging to estimate as the network is decentralized so that the network participants would take the final decision. Burgel said:

“We imagine this is going to be a kind of marketplace. I think it should be comparable to a VPN subscription, which is an order of like $10 a month, so for some reasonable usage, it should be in that range.”

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Author: Hank Klinger

New Zealand BANK ASB Participates In $1.7 Million Seed Funding Round For Startup TradeWindow

The New Zealand Bank ASB participated in a $1.7 million seed funding round for a blockchain company called TradeWindow. The information was released on Monday by TradeWindow in a press release in which they informed that they are also planning a commercial launch in the near future.

TradeWindow Raises $1.7 Million In Funding Round

As per the official announcement, TradeWindow is a company located in New Zealand that is running a software-as-a-service (SaaS) business. Some of the investors include the Leroux family office, Te Hana consulting and the Rae Family office. New Zealand’s ASB Bank has also decided to participate in the investment.

By using a digital super-connector, TradeWindow enhances the whole supply chain and it provides higher efficiency and trust for the global trade. Furthermore, by using blockchain technology, it is possible to create a ‘single trading window’ that can be accessed by all parties involved in the export transaction.

That means that both, buyers and sellers, importers and exporters, will have access to it throughout the whole supply chain. ASB Bank participated in 2018 in a pilot conducted by TradeWindow in which they executed a trade between a meat exporter and a Korean importer.

Nigel Annet, ASB’s general manager of business banking, explained that this investment made in TradeWindow offers an opportunity to simplify the whole export process. Moreover, it also adds a secure layer for parties to share information such as data and documentation. It is worth mentioning that Nigel Annet is also on TradeWindow’s board.

Furthermore, the CEO and founder of TradeWindow informed that the new funding round is very important for the whole platform that is very close to commercial launch. This will definitely have a positive impact on the market and attract the interest of other companies in the region.

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Author: Carl T

Institution Oriented Crypto Exchange Seed CX Cuts Trading Fees

Chicago based crypto exchange Seed CX has cut its trading fees.

Edward Woodford, co-founder and CEO of Seed CX said:

“With our aggressive fee schedule and low slippage books, we continue to be the leading venue globally for cost of execution in the digital asset space. Our one basis point rebate for making is designed to encourage continued tightening and depth in our books. We look forward to continuing to lead institutional digital asset trading with best execution, operational support and technology.”

The exchange officially launched in January, is a regulated institutional cryptocurrency execution and settlement ecosystem. Additionally, both spot and derivatives (pending regulatory approval), Seed CX also offers a regulated post trade settlement infrastructure as well as on/off ramp access for 20 world fiat currencies.

Rather than a multi-tiered fee structure offered by several major exchanges, where traders get lower rate if their transactions reach a certain volume, Seed CX aims to give every participant the best rate possible. Fee compression is already at an advanced stage at Seed CX, while other crypto exchanges still have room to cut, David Martin, chief investment officer at asset manager Blockforce Capital.

Seed CX operates a digital asset exchange built expressly for institutional investors. Through its subsidiaries, Seed CX offers a market for institutional trading and settlement of spot digital assets and plans to offer a separate market for CFTC-regulated derivatives.

There’s a new partnership in the digital asset space, as technology provider Itiviti has announced that it has partnered with Seed CX. The collaboration will allow traditional institutional firms that use Itiviti’s NYFIX network access to Seed CX’s digital asset exchange and settlement ecosystem.

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Author: Sritanshu Sinha

Seed CX Has Started Testing Physically-Settled Swap Contracts With Bitcoin

Seed CX, a Bitcoin (BTC) derivatives firm, has recently decided to start the tests with its new margin swap products. According to the company’s press release, the matching platform os swapping products can already be tested by the clients via the Seed SEF platform.

The CEO of Seed CX, Edward Woodford, affirmed that this initial period of testing will be used in order to allow people to get in touch with the offerings and determine what is working or not to deliver a great product later. He affirms that the product will probably be officially launched within the next three months.

From the technological point of view, the company is ready for the launch and only requires the predicted time for testing. The only possible reason for delays can be regulators, which can be considerably more unpredictable.

Brian Liston, the president of the crypto derivatives company, affirmed that all Bitcoin of the new platform will be physically-settled and that the company is pretty excited to have such an interesting offering for investors. According to him, these are the final steps in order to get the product ready and out of the door, but some more beta testing is required first.

Seed CX Will Have Competition

Seed CX may be getting its products ready, but the company is far from being the only one to do it. Several other companies are focusing on the same niche. Blade (which was backed by Coinbase), ErisX and LedgerX are all getting ready to offer similar products.

Most of them are still getting services ready, too, so the ones to take the lead will probably get an edge on the competition.

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Author: Gabriel Machado

Binance Labs-Backed Marlin Protocol Hoping to Supercharge Blockchain Speeds With $3M Funding

Binance-Labs-Backed-Marlin-Protocol-Hoping-to-Supercharge-Blockchain-Speeds-With-3M-Funding

Thanks to several seed investors, who included Binance Labs, Electric Capital, Arrington XRP and NGC among others, Marlin Protocol has managed to amass a whopping $3 million. But while achieving such a massive amount in seed round is no mean feat, it also explains the amount of confidence the investors have in Marlin Protocol.

Marlin Protocol is a promising startup based in San Francisco and Bangalore in India. The purpose of this company mainly is to create ways and means through which network speeds across various Blockchain is increased. The motivation behind this is because throughput constraints are largely perceived as the largest hurdles impeding fast Blockchain adoption.

Ideally, the startup hopes to overcome the impediments and enhance speeds according to what the company’s CEO, Siddhartha Dutta, terms “bandwidth-sharing marketplace.” According to him, the best way to improve the bandwidth is to use “relayers,” especially because projects such as Algorand are already using them.

Arrington XRP Capital partner, Michael Arrington, also spoke highly of the Marlin. He said that the protocol leads the way among the most recent Blockchain-agnostic infrastructure startups, adding that it will greatly enhance the network’s effectiveness.

However, Dutta’s decision to use relayers seems to make sense. Algorand uses them, even though as Dutta says, the total relayers it uses is in “single digits.” But he believes that if the same ‘single-digit relayers’ were to be “bribed,” the whole network would instantly be more effective. Relayers, according to him, are the real conduits of communication.

Marlin Protocol, therefore, aims to use this idea and introduce a web of relayers, which will collectively secure nearly every Blockchain. This would happen together with ordinary node activities like staking and mining.

A majority of ETH, BTC or pretty much any professional group of miners and staking companies know the importance of maintaining strong, stable bandwidth connections, according to Dutta. He expects nodes to be interested in jointly working with Marlin; after all they’ll be paid for the bandwidth they spend.

Marlin Protocol has reportedly partnered with a couple of projects already, all of them interested to run their services on its ‘private test networks.’ It has WandX, Blockcloud, Murmur and Holochain, even as the list is likely to grow.

Meanwhile, Dutta is optimistic about the planned launch of a public Marlin testnet. The launch date hasn’t been revealed and it could happen in two or three months. The mega launch of the targeted mainnet, according to him, is, however, expected to take place later in 2020.

While speaking to CoinDesk, Electric Capital Managing Partner, Curtis Spencer, was upbeat that the protocol will help enhance the efficiency of the network. He said that Marlin’s long-term vision that’s pegged on privacy-preserving packet delivery is exciting.

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Author: Lillian Peter