Cosmos-based DEX Penetration raises $ 21 million from a pool of investors

Cosmos-based DEX Penetration raises $ 21 million from a pool of investors.

Osmosis, a decentralized exchange, or DEX, on the Cosmos blockchain, has raised $ 21 million in a token sale led by VC fund Paradigm along with a group of investors including Robot Ventures, Nascent, Ethereal and Figment.

Osmose enables developers to create custom Automated Market Makers or AMMs with sovereign pools of liquidity. The DEX uses a native token called OSMO for governance and staking and currently has a total of $ 544 million.

The project is designed to provide super liquid staking and instant block confirmation. Super Liquid Staking allows liquidity holders to wager their LP tokens to receive proportional staking rewards in OSMO. This gives token holders the ability to double staking and liquid returns while keeping the network safe. Block confirmations immediately create a Miner Extractable Value or MEV resistance and prevent traders from picking out transactions on the network.

Paradigm, an investment firm known for its focus on DEX platforms, is adding Osmosis to its DEX portfolio alongside Maker, Synthetic, Uniswap, Optimism, FTX, Coinbase and BlockFi. The company’s stake in Osmosis marks its first investment in the Cosmos ecosystem. All other holdings are on the Ethereum-based DEX platform.

Charlie Noyes, Investment Partner at Models:

“The introduction of IBC, Cosmos’ cross-chain interaction protocol, sparked an explosion in developer activity and testing in the Cambrian. Osmosis is a natural focal point of liquidity in the emerging defi ecosystem of Cosmos. “

The platform’s successful fundraising follows the surge in traffic on the Cosmo network since the launch of the new inter-blockchain communication protocol in March, which enables assets to be transferred digitally between chains on the network. Last month, Osmosis had the largest number of token transfers over the IBC protocol in the last month.

According to the project’s whitepaper, the main design idea behind the Cosmos blockchain is to create an “Internet of Blockchains”. The Cosmos Network consists of its main chain called the Cosmos Hub, which is the backbone of a network of interconnected, decentralized blockchains, including the Binance Smart Chain.