Chainflip Labs secures $10 million for cross-chain DEX

Quick Take

  • Framework Ventures, Blockchain Capital and Pantera Capital have backed the decentralized exchange.
  • Chainflip Labs is plotting an Initial DEX Offering for later this year. 

Chainflip Labs, a Berlin-based startup building a cross-chain decentralized crypto exchange, has raised $10 million from venture capitalists.

Framework Ventures, Blockchain Capital and Pantera Capital supplied the funding in exchange for equity in the company, Chainflip announced on Wednesday. No valuation was disclosed.

Simon Harman, founder and CEO of Chainflip, told The Block that the startup is trying to “take capital efficiency to the logical extreme” with a simple interface and user experience that negates the need for wrapped tokens or niche wallets.

“Really what we’re trying to do is not just build something where you can bridge tokens from one chain to another,” he said. “We’re trying to build something that can displace the role of the centralized exchange in crypto, because frankly speaking they are still the most widely used solution.”

While Harman concedes that decentralized exchanges like the Ethereum-based Uniswap have to some extent done that already, he sees Chainflip as unique in not being tied to any one chain. Chainflip has its own network of validators and is running its own blockchain, Harman added.

Token sales

The company raised $6 million through a private token sale in August 2021. The token, FLIP, will be used as collateral for the protocol’s validators. “The token doesn’t currently exist but we have a range of contracts with 50 distinct investors,” said H