Swaap Raises $4.5M in Seed Funding to Launch Revolutionary Version 2

In the Brief:

  • Swaap Labs closed a $4.5m seed funding round led by Signature Ventures with Kima Ventures and Entrepreneur First also participating
  • DeFi app version two will address impermanent loss while enabling profitable market-making on-chain

3 - 5 minute read

The DeFi space is undergoing several enhancements that promise to revolutionize the way liquidity providers and traders conduct their transactions. Swaap Labs, the company building Swaap, has successfully closed a $4.5 million seed funding round that will enable them to accelerate the development and release of Swaap version two. The funding round was led by Signature Ventures, with participation from high-profile investors that included New Form Capital, C² Ventures, Kima Ventures, Pareto Ventures, Entrepreneur First, and renowned business angels like Stake Capital’s Julien Bouteloup, CEO of Ledger Pascal Gauthier, CEO of Quantstamp Richard Ma, The Graph’s Tegan Kline, CSO of Coinshares Meltem Demirors, co-founder of Arianee Frederic Montagnon and CEO of eFounders Thibaud Elzière.

Swaap aims to address the critical issue of impermanent loss, which is a prevalent problem in DeFi. Launching in July 2022 on Polygon, Swaap version one has already proven that profitable market-making on-chain is possible. Its WBTC/WETH/USDC pool, powered by Chainlink price feeds, has recorded less than 0.1% of impermanent loss. Swaap version two is set to revolutionize the DeFi landscape with its new enhancements and features, further improving version one.

Swaap version two employs advanced market-making models in DeFi, built by leveraging the AMM (automated market maker) simulator developed in partnership with the Louis Bachelier Institute, a leading math research institute. The new architecture empowers users with access to a diverse range of tokens, including yield-bearing options, thereby expanding the platform’s capabilities and solidifying itself as a front-runner in the DeFi space.

Cyrille Pastour, co-founder of Swaap Labs, expressed his excitement about the support from investors as they work toward democratizing DeFi and creating a more efficient environment for liquidity providers. “This funding will enable us to accelerate the development and release of Swaap version two, which promises to deliver even more value to LPs and traders in the DeFi ecosystem,” he said.

Dr. George (Juri) Stricker, tech partner of Signature Ventures, added, “We think Swaap’s market maker protocol is a true game-changer for decentralized finance.” Stricker believes that Swaap is setting new standards in DEX efficiencies for liquidity providers and traders. He further opined that Swaap is an essential building block in the evolution of DeFi towards a financial system.

The announcement of Swaap’s successful seed funding round and upcoming version two launch gives traders several opportunities to leverage the potential benefits of the platform. By offering more stable yields and sustainable returns, Swaap promises to be a game-changer in the DeFi space, giving liquidity providers and traders an edge in the market.

The Bottom Line

Swaap’s successful seed funding round, and upcoming version two launch, offers fresh opportunities for traders. With its advanced market-making models, yield-bearing options, and improved architecture, Swaap promises to deliver even more value to LPs and traders in the DeFi ecosystem in the future.

Disclaimer: The content in this article is provided for informational purposes only and should not be considered as financial or trading advice. We are not financial advisors, and trading carries high risk. Always consult a professional financial advisor before making any investment decisions.

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