Solana-based stablecoin exchange Saber raises $7.7 million from Chamath Palihapitiya's Social Capital and others

Quick Take

  • Saber has raised $7.7 million from Chamath Palihapitiya’s Social Capital, Jump Capital, and others.
  • With fresh capital at hand, Saber wants to scale its team of 3 and support more assets on its platform.
advertisement

Saber Labs, the development team behind Saber — a Solana-based cross-chain exchange for swapping stablecoins and wrapped tokens — has raised $7.7 million in a seed funding round.

The round was led by Race Capital, with participation from Chamath Palihapitiya's Social Capital, Jump Capital, Multicoin Capital, and the Solana Foundation. Angel investors, including FTX's Tristan Yver, OKcoin's Jason Lau, Curve Finance's Julien Bouteloup, Terraform Labs' Jeff Kuan, and Stacks' Ryan Shea, also participated in the round.

This was an equity funding round, Saber Labs co-founder and CEO Dylan Macalinao told The Block. It will help scale Saber's team and support more assets on the platform, he said.

Saber Labs is currently a team of three, and Macalinao is looking to hire around seven people by the end of the year, he said. As for platform expansion plans, Macalinao said Saber currently supports assets from the Ethereum, Terra, Solana, and Bitcoin blockchain, and it is looking to support "every major chain, specifically looking at Polygon and Celo."

TVL growth 

Launched last month, Saber allows users to swap between stablecoins and wrapped tokens, similar to Ethereum-based Curve exchange. Saber also enables users to deposit assets to provide liquidity and earn yield from transaction fees and liquidity incentives, and thus, also acts as an automated market maker or AMM.

Macalinao said Saber's competitive edge is the number of assets it supports. "The main competitor to Saber on Solana is Mercurial Finance, which only supports four assets compared to Saber's rapidly growing 15+," he said. "Because of this, Saber has been able to attract significantly more liquidity (currently over ~2x more) as it helps bridge communities across the entire blockchain ecosystem."

Indeed, Saber has seen significant growth since its launch less than two months ago. Saber is currently the third-largest decentralized application on Solana in terms of total value locked (TVL), according to tracker DefiLlama. Saber's TVL at the time of writing is over $126 million, only behind Raydium and Serum.

Curve, on the other hand, has a TVL of around $8.5 billion, according to DeFi Pulse. Macalinao said the Solana ecosystem is "so early, we see a clear opportunity to establish Saber as the market leader in stablecoin exchanges, similar to how Curve is so dominant within the Ethereum ecosystem."

Solana is seen as a competitor to Ethereum and it is faster and cheaper for executing transactions. Macalinao said nodes on Solana need less time to validate transactions, and block times are as low as 400 milliseconds, compared to Ethereum's 15 seconds. As a result, Solana can handle a throughput of more than 50,000 transactions per second (TPS), compared to around 30 TPS on Ethereum, he said.


© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Trending Stories

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

Will Sanctions Drive Russia into the Arms of Cryptocurrencies?

From the removal of many Russian banks from SWIFT to a seemingly constant flow of new sanctions, Russia’s invasion of Ukraine has left many to wonder: Is the country likely to lurch towards cryptocurrencies? And if so, what does this mean for businesses that are holding and/or using crypto? Crypto and sanctions evasion Although crypto […]
Read Full Story
Sponsored Post

Layer-2 Scaling Solutions: A Framework for Comparison - Commissioned by Polygon

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.
Read Full Story
May 5, 2022, 3:17PM UTC
More