ZK Dark Pool Startup Renegade Raises $3.4 Million Led By Dragonfly Capital

Key Points:

• Renegade has raised a $3.4 million seed round led by Dragonfly.
• It solves all of the counterparty risks by building an end-to-end encrypted exchange, a dark pool.
• The startup works towards a public testnet in the coming months.

With the help of a $3.4 million seed round led by Dragonfly Capital and the former CEO of AngelList, Naval Ravikant, the start-up Renegade, which is developing a novel kind of decentralized exchange, has come out of hiding.

According to a statement from the startup, the round also included Balaji Srinivasan and Lily Liu, Tarun Chitra from Robot Ventures, Marc Bhargava from Tagomi, and Lev Livnev from Symbolic Capital Partners.

Based on multi-party computation (MPC) and zero-knowledge proofs, Renegade is creating an on-chain equivalent of a dark pool, a trading venue popular in conventional financial markets.

Dark pools enable institutional investors to purchase or sell massive volumes of shares in conventional stock markets with a reduced risk of the price responding to their monster orders. In direct contrast to this, DeFi makes all trading information publicly accessible.

Renegade’s straightforward goal is to let knowledgeable traders trade at better prices without disclosing their intentions to the larger market.

With the use of zero-knowledge proofs and encryption, Renegade eliminates counterparty risk. On-chain guarantees custody. No one needs to be trusted by users. Because validators and sequencers only ever view ZKPs of valid transactions, they can also significantly reduce MEV in DeFi. No more sandwich attacks or transaction reordering mischief.

As with rollups, the majority of ZKP applications to date have been for succinctness. Nonetheless, ZKPs are employed in Renegade to conceal transactions and balances.

Then, utilizing MPC, the matching engine is executed without disclosing its internal state prior to trade clearing.

By discouraging actions like front-running, sandwiches, and statistical arbitrage, Renegade’s technology aims to enhance price execution in DeFi.

According to the startup, it wants to offer a trustless trading platform while avoiding the risks associated with current decentralized exchanges. As a result, it will immediately cross-order flow in an anonymous manner at middle pricing.

Already operating on an internal testnet, Renegade will launch on a public testnet in the second quarter of 2023.

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