Decentralized exchange aggregator ParaSwap raises $3 million in new funding
May 10, 2021, 8:00AM EDT
1 min read
ParaSwap, a decentralized exchange (DEX) aggregator, has raised $3 million in a seed extension round.
The round was led by Blockchain Capital, White Star Capital, and DeFi Alliance, with participation from Andre Cronje, founder of Yearn Finance; Michael Egorov, founder of Curve Finance; and Fredrik Haga, founder of Dune Analytics.
With fresh capital at hand, Ethereum-based ParaSwap wants to support other blockchains, as well as Ethereum Layer-2 networks, founder Mounir Benchemled told The Block. These include Avalanche, Arbitrum, and Fantom blockchains, and Layer-2 networks such as ZkSync and Optimism, said Benchemled.
These networks are a "great and quick solution" for Ethereum's high gas fees, said Benchemled.
ParaSwap was launched in September 2019 and claims to have facilitated nearly $2 billion worth of trading volume since the launch. ParaSwap's last 24-hour trading volume was around $30 million, and the aggregator claims to have about 65,000 users in total.
It is not clear whether the seed extension round was an equity raise or a SAFT (simple agreement for future tokens) sale. Benchemled declined to comment to The Block. He also did not comment on whether ParaSwap is looking to launch its own token.
The seed extension round brings ParaSwap's total funding to date to $5.7 million. Last September, the project raised $2.7 million in a seed round.
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Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.