Decentralized exchange Krypton raises $7 million to lower costs for traders

Decentralized exchange Krypton has raised $7 million in a seed round led by Framework Ventures. 

Other investors include Samsung Next, GSR and Foresight Ventures, Krypton said in a release. 

Krypton won Chainlink’s fall 2021 hackathon with the goal of being the first exchange that fully protects market participants from predatory trading and cost inefficiency.  

The funds from the seed raise will be used to launch the decentralized exchange in the first quarter of 2023. 

A decentralized exchange enables parties to transact directly — without financial intermediaries — using blockchain technology.

The Krypton exchange leverages a continuous batch auction for price discovery, which aims to reduce slippage and protect against Maximal Extractable Value (MEV) and impermanent loss, which is when token price changes compared with when the token was placed in the liquidity pool. 

To power its matching engine, Krypton uses Chainlink’s Decentralized Oracle Network (DON). It can take complicated computations off-chain, lowering costs for traders. 

“We see Krypton as a platform for an entirely new format of crypto trading that could reach completely new institutional and retail user demographics” said Michael Anderson, co-founder of Framework Ventures. “For DeFi to mature, best execution needs to be a priority, and we think Krypton’s solution will play a major role in this transformation.” 

Krypton’s recent seed raise is in line with the average check size for a seed round, according to The Block Research’s August funding recap.

The Block Research