Elixir Raises $2.1M To Boost Liquidity In Crypto Markets

Elixir, a crypto market-making protocol, has closed a seed funding round, raising a total of $2.1 million from various institutions and investors. The aim is to rethink market making and bring better liquidity, fairness and transparency to the industry.

Market making is one of the most important industries in the cryptocurrency world, with companies accounting for a large portion of the liquidity and volume that allows the market to trade efficiently 24/7.

Market making and its role in the crypto market

There are two types of market making within the industry: liquidity for hire and high frequency trading (HFT). HFT companies generate yields using proprietary algorithms and advanced strategies to generate delta-neutral returns with micro-spreads on liquid assets, whereas in the liquidity-for-hire model token projects supply the majority of the supply to companies. have to pay. For basic liquidity provisioning on Centralized Exchange (CEX) pairs. This is the current industry standard for how DApps and protocols access paired liquidity.

Often in this model, market makers receive 2-5% or more of a project’s total token supply in exchange for a 12-18 month contract. This is widely seen as a necessary evil by its founders.

Additionally, virtually all centralized exchanges impose stringent requirements on aggressive market-making for projects to gain and maintain listings.

Elixir Raises $2.1M, Aims to Fix Predatory Market-Making Situation

today, Elixir announced Raises $2.1M in seed round Commonwealth, FalconX, Arthur Hayes, Avalanche and more names on board

Avax
ChapterOne, KuCoin, Gate, Betaworks, OP Crypto, Quantstamp, etc.

Through a trustless decentralized protocol, Elixir transforms market making, enabling everyone to participate in active market making on centralized and decentralized exchanges. The protocol coordinates project incentives and brings full transparency to market making.

Through Elixir, Token Projects can get better market-making of exchange pairs than what centralized companies offer, while saving over 99% of their costs. Projects can also see exactly how liquidity is provisioned, bringing full transparency to all parties.

In addition, traditionally the profits earned by market-making companies are paid out to the community of tokens. Community members can participate individually and earn subsidized returns in the form of token rewards.

Elixir is a fully configurable protocol that also allows targeting DeFi exchange pairs, actively provisioning target liquidity with centralized liquidity AMMs and centrally restricted orderbook DEXs. Elixir enables venues and projects to foster active market-making, giving retail DeFi users a single venue to easily make markets across their DEXs and CEXs. Finally, exchanges themselves can integrate Elixir directly, allowing retailers to participate in aggressive algorithmic market making.

Because the protocol is decentralized and open source, it offers projects and token investors greater transparency and insight into how liquidity is unfolding. This is a significant departure from the traditional “black box” nature of market making.

Elixir founder while talking about fundraising Philip Forte He voiced the potential for the protocol to be integrated as the core infrastructure of the entire crypto ecosystem:

“Elixir is actively working with major exchanges and projects to enable them to provide more efficient and transparent liquidity to central limit orders. They will no longer be forced to pay predatory fees on exchange pairs, and Elixir will help build a permanent and predictable liquidity base for exchange pairs.”

Forte added that Elixir’s benefits extend beyond centralized exchange pairs to on-chain pairs.

“Once projects have a decentralized protocol that allows them to encourage algorithmic liquidity provisioning on CEX, they can apply the same infrastructure to on-chain orderbooks and AMM bond curves. We have announced and are actively working on several integrations with decentralized exchanges that should.”

As mentioned above, the project has also announced several notable partnerships, including native backend integration into the Perpetual Protocol to provide active algorithmic market making on multiple perpetual swap pairs of the platform. bottom.

Other planned integrations listed on the protocol’s site include DyDx, Injective Labs, SudoSwap, Perennial, and Magpie.

With a trustless off-chain infrastructure, Elixir supports both on-chain order books and centralized liquidity AMMs (much like traditional central limit order books) cross-chain.

Elixir aims to disrupt the cryptocurrency market-making environment with the aim of increasing the effectiveness of liquidity deployment on both centralized and decentralized exchanges.