The investment firm Paradigm has become the lead investor in the Series A funding round for the startup Kuru Labs, investing $11.5 million in the project to create an innovative decentralized exchange. Kuru Labs is developing a trading platform that combines the functionality of a central limit order book (CLOB) and automated market makers (AMM), which will provide a new approach to liquidity formation in the cryptocurrency market.
This is reported by Finway
Features of the Kuru Labs Exchange
The new exchange will operate on the Monad blockchain, which is compatible with the Ethereum ecosystem. The main innovation lies in the implementation of a default market maker for each order book — its strategy will be based on the AMM model. This solution will enable continuous liquidity support on the exchange without the need to engage external market makers.
Strategic Partnership and Development Prospects
According to Kuru Labs co-founder Vaibhav Prakash, Paradigm is an important strategic partner for the startup’s development. The investor’s team has a deep understanding of market dynamics and the microstructure of digital assets, as evidenced by previous investments in projects such as Ellipsis Labs, Sorella Labs, and Uniswap.
“Their team has a solid grasp of market dynamics and microstructure. Investments in Ellipsis Labs, Sorella Labs, and Uniswap indicate that the people at Paradigm truly understand how on-chain markets operate.”
The funds raised will allow Kuru Labs to expand its team and implement the concept of a fully on-chain order book based on Monad. Previously, the startup had already raised about $2.2 million during its seed funding round, and the new capital will significantly accelerate the development and launch of the platform.