September 6, 2021 — Cyclos, Solana’s new DeFi project, raises 2.1M dollars from public and private investment rounds. The project used the funds to develop the first concentrated liquidity AMM (automated market maker) on the Solana network. The AMM will offer several unprecedented features capable of revolutionizing the blockchain space.
The round of funding which was private involved numerous well-known investors like Solana Capital, CMS Holdings, Huobi Ventures, Coin98 Ventures, Hashkey, Gate.io, MXC, Petrock Capital, Skyvision Capital, Cryptomeria Capital, Illusionist Group, Youbi Capital, and DigiStrats.
The upcoming project will leverage the unique idea of concentrated liquidity proposed by the Uniswap V3. With Solana’s low-latency and high throughput blockchain capabilities, the network can develop concentrated liquidity tethered to an order book-based DEX named Serum. The DEX will offer several perks related to capital efficiency inherent to concentrated liquidity, but with some limitations.
Capital provided to Cyclos will be utilized to facilitate liquidity features on Serum as per the ranges mentioned by the liquidity providers. Using Serum eliminates the need for initial liquidity for automated market makers and bootstrap volume, decreasing impermanent loss risk for new pairs. Moreover, it will instantly guarantee income for liquidity providers.
Cyclos will be exceptionally useful for stablecoin pairs since they allow market creation without any algorithm. Moreover, Cyclos offers new functionalities like stop-loss/limit orders and range orders, the first for any Solana automated market maker.
Cyclos spokesperson, Jason O’Brien, talked about the situation. According to him, the company is delighted to begin the Cyclos journey with strong backing. The project will introduce numerous functionalities to Solana’s DeFi. Such features have never been seen in the currently existing infrastructure. Capital-efficient liquidity pool bootstrapping, order book-based stable asset market creation, and range-limit orders become possible because of Cyclos’ innovative approach.
Dan Matuszewski, CMS Partner, talked about the development. As per Dan, CMS is excited to help Cyclos bring concentrated liquidity to the Solana network. Solana is quickly gaining a global audience, increasing the demand for a quality AMM experience. With a robust team, Cyclos is in a good position to make an impact on Solana’s growing DeFi ecosystem.
Cyclos is Solana’s first concentrated liquidity market maker. It allows LPs (liquidity providers) to optimize their assets’ yield-earning potential by placing individualized price curves on Serum’s order books directly. The initial version of the product is set to release in Q3, 2021.