Are you a Uniswap user? Here’s some good news for you! Uniswap Labs, the company behind the most prominent decentralized exchange in the world, is beginning to put together a fresh round of funding to expand its services.
So what does this fresh round of funding means, and how will it benefit the users/customers?
According to two sources, the startup is currently in discussions with several investors, including Polychain and one of Singapore’s sovereign funds, to raise an equity round of between $100 million and $200 million at a valuation of approximately $1 billion.
Let’s explore more about the funding approaches and how they will benefit us in the news highlights:
- According to Web3 Signals, Uniswap Labs completed its most recent investment round, a Series A, in August 2020. The company’s existing investors include a16z and Paradigm.
- Moving forward, the recent funding indicates that Uniswap has ambitious aspirations to increase the services and products it provides. According to DeFi Llama, the decentralized exchange controls 64 per cent of the total volume traded on DEX. Moreover, despite the recent market decline, the market capitalization of the exchange protocol’s token has nearly reached $5 billion. (Throughout the most extreme portion of the bull market the previous year, Uni’s market valuation topped $22.5 billion.)
- According to the sources, since the last phases of the round’s deliberations have not yet occurred, significant changes may be made to the parameters of the deal. Uniswap Labs chose not to comment in response to a request made on Thursday, while Polychain did not respond to the request.
- Uniswap Labs has said during the past few months that they have plans to offer “many new items.” According to Uniswap Labs COO Mary-Catherine Lader, who spoke with the news outlet Decrypt, one of the new offers will give users the ability to trade NFTs on Uniswap from various other marketplaces and wallets.
Uniswap: A Brief Overview
Uniswap is a protocol on Ethereum that allows users to trade ERC20 tokens with one another. Unlike most exchanges, which are meant to make money by charging fees, Uniswap is intended to serve as a public good by providing the community with a tool that allows them to trade tokens without paying platform fees or going through middlemen.
In addition, unlike most exchanges, Uniswap uses a straightforward mathematical formula in conjunction with pools of tokens and ETH rather than matching buyers and sellers to calculate prices and carry out trades. The platform’s liquidity does not depend on individual purchasers or vendors in any way.