Primitive raises $9 million to build AMM discovery platform

Quick Take

  • Bain Capital Crypto leads DeFi infrastructure and product developer Primitive’s $9 million Series A round. 
  • The new funding will enable Primitive to build products that make it easier to discover popular AMM liquidity pools. 

Decentralized finance (DeFi) infrastructure and product developer Primitive announced it has raised $9 million in a Series A round led by Bain Capital Crypto. 

Other investors in the round include 1Confirmation, Nascent and Robot Ventures, according to a press release issued Thursday. 

Founded in 2020 by Alexander Angel, Primitive builds innovative products focused on Automated Market Makers (AMMs). 

What is an AMM?

AMMs power decentralized exchanges (DEXs), a type of exchange that enables transactions to occur directly between traders without the need for a third party to settle the trade. 

On a centralized exchange, professional market making firms such as Susquehanna Capital Group and Wolverine Trading provide liquidity for traders. 
 
To remove the risk of liquidity being controlled by a select few parties, decentralized exchanges leverage AMMs that offer liquidity pools. Anyone can contribute assets to the pool and the AMM uses algorithms to price the assets in the pool, balance the pool, and trade with DEX users. 

Building an AMM discovery platform

The proceeds of the Series A round will enable Primitive to build products that make it easier to discover popular AMM liquidity pools, as well as new strategies to participate in, per the release. These products will be enabled through a new protocol and suite of development tools. 

“Primitive offers advanced financial products and market-making strategies while retaining the elegance and simplicity of automated liquidity provision,” said Alex Evans, partner at Bain Capital Crypto, in a statement. “We are excited to work with the excellent Primitive team as they broaden access to powerful crypto-native financial instruments.” 

Primitive previously raised $3 million in a seed round in May 2021, according to a Securities and Exchange Commission filing. The team is currently led by Angel, Zach Thielemann and Matt Czernik, and is looking to hire in New York and remotely this year, per the release. 

The Block Research’s latest funding recap shows that DeFi funding volumes increased 37% month-over-month and 17% by deal amount in July. 

The report notes that the frequency of DeFi deals had tapered off in the months leading up to summer. However, DeFi deals have increased for two consecutive months now, which could suggest investor interest is rebounding. 

Blockchain/crypto venture funding bar chartThe Block Research

Monthly blockchain/crypto venture funding from The Block Research

 

 


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About Author

Kari McMahon is a deals reporter at The Block covering startup fundraises, M&A, FinTech and the VC industry. Prior to joining The Block, Kari covered investing and crypto at Insider and worked as a python software developer for several years. For inquiries or tips, email [email protected]