By
Godfrey Benjamin
February 7th, 2024
According to Krypton, they use the novel approach to the conventional order book concept in order to set themselves apart from the other existing decentralized exchanges.
Decentralized exchange Krypton has reportedly raised $7 million in a seed round led by Framework Ventures. According to the company, the fund would go into the establishment of its decentralized exchange in the first quarter of 2023. In addition to the leading investor, the round was also participated by Samsung Next, GSR, and Foresight Ventures.
It can be recalled that the Krypton exchange emerged as the winner of Chainlink’s fall 2021 hackathon after laying down its goal of becoming the first crypto exchange to fully protect market traders from trading and cost inefficiency.
According to Krypton, they use the novel approach to the conventional order book concept in order to set themselves apart from the other existing decentralized exchanges. In this case, price discovery relies on a continuous batch auction. The company further stated that more DeFi could emerge that would look like Fintech or financial services.
“This is our secret sauce. Instead of just saying ‘I want to buy token X for $Y,’ you also specify a trading speed, a rate at which you want the trade to happen. Then a market maker takes the other side, and instead of the transfer happening instantaneously, it gets spread out across time,” said Krypton co-founder, Nathan Moore.
This is said to serve as a protection against miner extractable value (MEV), and loss. In addition to the launching of its DEX, Moore discloses that the fund will go into its engineering team and research community.
According to Framework Ventures co-founder Michael Anderson, Krypton is entirely different from the other exchanges and operates on a new format of crypto trading. He believes that this makes it attractive to institutional and retail user demographics.
Framework Ventures has since 2020 invested heavily in the decentralized finance industry. Recently, it assisted DeFi bounty platform Immunefy to raise $24 million in an investment round. Despite its focus on the industry, Anderson has also mentioned that they are wary of potential government regulation.
“I’ve never seen a more tough regulatory environment than we’re seeing for Web3 and crypto. But frankly, I think what this is also driving is the need for DeFi and crypto at large to become more permissioned – it needs to be more KYC [know your customer],” he said.
