Cyclos Raises $2.1M to Build Concentrated Liquidity AMM on Solana
Tortola, BVI, 6th September, 2021,
Cyclos, a new Solana-based DeFi project, has raised a total $2.1 million combined from a private and a public round. The funding will be used to create the first concentrated liquidity AMM on Solana, which will enable a host of features never seen before in the blockchain’s ecosystem.
The private funding round included notable investors such as CMS Holdings, Hashkey, Solana Capital, Huobi Ventures, Coin98 Ventures, MXC, Gate.io, Skyvision Capital, Petrock Capital, Illusionist Group, Cryptomeria Capital, DigiStrats and Youbi Capital.
Cyclos offers a unique spin on the idea of concentrated liquidity pioneered by Uniswap V3. By utilizing Solana and its low-latency, high throughput blockchain, it is possible to create concentrated liquidity tethered to Serum, an order book-based decentralized exchange. This provides all the benefits to capital efficiency intrinsic to concentrated liquidity, with few of the downsides.
Funds committed to Cyclos are used to provide liquidity on Serum DEX according to the ranges specified by the LPs. Using Serum means that there is no need to bootstrap volume and initial liquidity for the AMM pools, reducing impermanent loss risk for new pairs and immediately guaranteeing some income for LPs. Cyclos is particularly useful for stablecoin pairs, where it becomes possible to make markets without using algorithms. Additionally, Cyclos enables new features like range orders and stop loss/limit orders, the first for a Solana AMM.
“We’re excited to fully begin the Cyclos journey with the strong backing we received,” said Jason O’Brien, a spokesperson for Cyclos. “Cyclos introduces a myriad of functionalities to DeFi on Solana that, until now, were not possible with existing infrastructure. Range-limit orders, capital efficient liquidity pool bootstrapping and orderbook-based stable asset market making are all possible due to Cyclos’ innovative approach to concentrating liquidity providers’ assets.”
“CMS is excited to support Cyclos in their mission to bring concentrated liquidity to Solana,” said Dan Matuszewski, Partner at CMS. “The growing Solana user base has increased the demand for a world class AMM experience. The Cyclos team is strong and well positioned to have a material impact on advancing Solana’s DeFi ecosystem.”
Cyclos is the first concentrated liquidity market maker on Solana. Cyclos allows liquidity providers to maximize the yield-earning potential of their assets by placing individualized price curves directly on Serum’s order books. The V1 of the product is due to launch in Q3, 2021.
- Jason O’Brien