Cross-chain liquidity infrastructure Router Protocol completes $4.1 million in financing, with participation from Coinbase Ventures and others

Original source: Router Protocol

Original compilation: Noc, Rhythm BlockBeats

Rhythm BlockBeats news, on December 10, the cross-chain liquidity infrastructure Router Protocol completed $4.1 million in financing, Coinbase Ventures, Woodstock Fund, QCP Capital, Alameda Research, De-Fi Capital, Well-known institutions such as Polygon, Wintermute, Shima Capital, Maple Block, and Bison Fund participated in this round of financing.

Importance of cross-chain liquidity infrastructure

The rapid growth of Ethereum applications has produced a lot of competition and competition between Layer 1 and Layer 2 Cooperation, such as Avalanche, Polygon, BSC, etc., and non-EVM chains such as Solana, Terra, Algorand, and Cosmos. As multiple blockchain ecosystems develop, liquidity continues to be fragmented across these various blockchains. Each chain has a thriving community of Dapps, including platforms that facilitate transactions, lending, NFT-related events, and more.

Value of Router

Router Protocol, established in Singapore, is building a cross-chain infrastructure to realize current and emerging Communication between Layer 1 and Layer 2 blockchain solutions. Router has announced partnerships with multiple protocols, including Polygon, Avalanche, Terra, Algorand, and more, with plans to launch mainnets from Layer 1 to some of these chains in the coming weeks.

How is Router different?

- assets are not fragmented (users get the actual asset they want, not a packaged version)

- supports the transfer of any form of generic data, not just assets

- 1-to-N bridge instead of 1-to-1 bridge, which enhances scalability, unlike most cross-chain bridges, including those built by blockchain Proprietary cross-chain bridge to facilitate assets in and out

- will serve as the bottom layer, allowing other DAPPs to utilize its cross-chain functionality

-Through Routerv2, Router will deploy an APP-specific blockchain that will transparently account for all operations performed by the protocol across the chain

- The Router team also built a full-fledged AMM called DFYN, one of the most popular DEXs on Polygon. This provides Router with deep liquidity support.

Router focuses on building general-purpose cross-chain messaging capabilities, rather than just focusing on liquid asset transfers. Using Router's SDK, any DApp, whether it is a wallet, DEX or NFT platform, or any platform that requires cross-chain functionality, can seamlessly connect to Router to achieve cross-chain messaging and communication.

About DFYN

DFYN is a multi-chain AMM DEX currently running on the Polygon network. DFYN nodes on various chains act as liquidity entry and exit points into the cross-chain liquidity supergrid enabled by the Router Protocol. DFYN is currently the leading DEX on Polygon and is expanding to multiple chains with Router.

Router Protocol CEO Ramani Ramachandran said, "We are delighted to have this dream team of investor partners; Also deeply involved in the design and development of Router and DFYN.”

Managing partner Darius Sit said, "Effective communication between blockchains is the future goal of DeFi. Working as a team, supporting them in their unique approach to the problem.”

Himanshu Yadav, Chief Information Officer, Woodstock

“We expect future Web 3.0 activity to span multiple multipurpose and application-specific blockchains. Router’s XCLP enables liquidity to flow across chains will become an important cross-chain infrastructure solution, and we are pleased to support the Router team in their efforts towards these.”

Some of the angel investors in this round include Sandeep Nailwal (Polygon), Gokul Rajaram (Doordash).

Conclusion

Security is paramount, especially considering that cross-chain bridges are very vulnerable to hacking. Multiple projects in the cross-chain space have recently been hacked. Therefore, the Router Protocol team focuses on hiring security consultants, top audit firms, and independent white hat hackers to conduct security audits on the protocol.

Leading security consulting firm Halborn has just completed a round of router audits. The incentivized testnet is currently live, and the mainnet is expected to launch in the next few weeks.  

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