- Hashflow — a decentralized exchange connecting DeFi traders with top crypto market makers — announced recently that it has closed a seed funding round of $3.2 million. These are the details.
Hashflow — a decentralized exchange connecting DeFi traders with top crypto market makers — announced recently that it has closed a seed funding round of $3.2 million from leading venture capital firms and angel investors. This round of funding was led by Dragonfly Capital and Electric Capital, and joined by IDEO Ventures, Alameda Research, Metastable, Galaxy Digital, Unanimous Capital, and angels including Balaji Srinivasan, Kain Warwick, and Ryan Sean Adams.
Decentralized exchanges on Ethereum have been seeing rapid growth over the past year with over $215 billion traded on DeFi alone in Q1 2021. And this growth can be credited to the popularity of Automated Market Makers (AMMs) which catalyzed DeFi’s explosive growth by offering a simple and permissionless on-chain trading experience.
Hashflow is building upon this foundation laid by AMMs by connecting DeFi traders with top crypto market makers. And using Hashflow, traders can receive price quotes directly from market markers and broadcast trades on-chain using Web3 wallets in a fully trustless manner. By replacing AMM bonding curves with professional market makers, Hashflow is able to offer traders better prices, zero slippage, and the lowest gas costs of any decentralized exchange on Ethereum.
For market makers, Hashflow is able to provide access to the expanding DeFi market while allowing full control over their inventory and pricing strategies. And until now, market makers have had to deploy capital in public liquidity pools, use pre-defined pricing functions, and pay heavy gas fees to change strategies on-chain. Through Hashflow, market makers can use bespoke pricing strategies and bridge them on-chain using digital signatures. This gives market makers full control over their capital, and flexibility to adapt to market conditions, using strategies informed by years of experience in centralized markets.
Hashflow had launched its closed private alpha product this week with market makers offering price quotes to traders on Ethereum mainnet. And in the coming weeks, Hashflow plans to integrate more market makers, and add additional asset pairs that dominate on-chain trading volumes. General audiences will be able to access Hashflow and trade on-chain with market makers by the end of the second quarter.
“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