US-based Hashflow, a decentralized exchange connecting DeFi (Decentralized Finance) traders with top crypto market makers raised a seed funding round of US$ 3.2 million on 30 April 2021.
Investors: The funding round was led by Dragonfly Capital and Electric Capital, with participation from IDEO Ventures, Alameda Research, Metastable, Galaxy Digital, Unanimous Capital and angels including Balaji Srinivasan, Kain Warwick and Ryan Sean Adams.
Purpose of the funding: As Hashflow launched its closed private alpha product this week, it plans to utilize the funding to integrate more market makers and add additional asset pairs that dominate on-chain trading volumes. The general audience will get access to Hashflow and trade on-chain with market makers by the end of the second quarter.
Founded in 2019 by Varun Vruddhula, Hashflow connects DeFi traders with top crypto market makers. With Hashflow, traders can receive price quotes directly from market makers and broadcast trades on-chain using Web3. Hashflow replaces AMM (Automated market makers) bonding curves with professional market makers and offers traders better prices, zero slippage and the lowest gas costs of any decentralized exchange on Ethereum.
Hashflow provides access to the expanding DeFi market to the market makers, allowing them full control over their inventory and pricing strategies. Until now, market makers had to deploy capital in public liquidity pools, use pre-defined pricing functions and pay heavy gas fees to change strategies on-chain. Hashflow allows them to use bespoke pricing strategies and bridge them on-chain using digital signatures, giving the market makers full control over their capital and flexibility to adapt to market conditions, using the strategies that they have developed over years of experience in centralized markets.
Decentralized exchanges on Ethereum have experienced significant growth over the past year with over US$ 215 billion traded on DeFi alone in Q1 2021. This growth can be credited to Automated Market Makers (AMMs) as it has expedited DeFi’s explosive growth by offering a simple and permissionless on-chain trading experience.
“Hashflow is the first project we’ve backed that seamlessly allows market makers to quote prices effectively to DeFi traders.” — Jon Kol, Director at Galaxy Digital, a leading cryptocurrency investment firm and market maker.
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