DeFi Protocol Elixir Closes $7.5 Million Series A Round Valuing It at $100 Million

Summary:
• Elixir is on a mission to incentivise liquidity provision in the DeFi market, while reducing the spreads between buying and selling prices.

Elixir, the fully composable DeFi protocol, has recently raised $7.5 million in a Series A funding round valuing it at $100 million, led by Hack VC. Other participating investors included NGC Ventures, AngelList Ventures, and Bloccelerate. There were also angel investors from Ledger Prime, Genesis Trading, and Hudson River Trading. According to a company statement, Elixir will use the new funds to hire new staff and expand its infrastructure.

A look at Elixir’s model

The protocol uses an algorithm to distribute available liquidity throughout the DeFi market order books. It is built to actively supply concentrated liquidity Automated Market Makers (AMMs) onchain and on central limit order books. The protocol also lets crypto projects use Liquidity Provider (LP) tokens as an incentive for trading volume on their centralised exchange (CEX) pairings.

In allowing users to supply liquidity directly to pairings on various exchanges and earn maker rewards, Elixir aims to increase liquidity across decentralised order book exchanges. Similar to traditional CEXs, order book-based decentralised exchanges allow users to directly execute orders with other traders while keeping full control of their crypto assets at all times.

To earn maker rewards with a risk-reward profile comparable to AMMs, Elixir users can provide liquidity directly to pairs on order book exchanges. By relying on liquidity pools rather than a traditional market of buyers and sellers, AMMs enable permisionless and automated trading of digital assets. AMMs are trading models that operate independently of centralised exchanges (CEXs) and other market-making methods.

Elixir’s goal aims to create a more streamlined market with reduced spreads between the buy and sell prices and higher trading volumes by providing incentives for enhanced liquidity. The company is now in a strong position to further develop its cutting-edge blockchain solutions and move closer to realising its long-term goals with the help of this fresh funding. Elixir has revealed that it will launch its delegated proof-of-stake protocol on the mainnet in the coming weeks.