Solana-based stablecoin exchange Saber Labs raises $7.7m

Saber Labs, the development team behind Saber, have secured $7.7m in an initial seed fundraising round led by early-stage venture capital firm Race Capital.

This capital funding injection will enable the Solana-based cross-chain stablecoin exchange to expand its decentralised liquidity network, which already includes popular assets originating from the Solana ecosystem, as well as Bitcoin, Ethereum and Terra.

Saber helps users trade digital assets quickly and efficiently, using the Solana (SOL) blockchain to enable the exchange to focus on supporting robust stablecoin markets.

Since decentralised assets from one blockchain can’t natively exist on another, stablecoins offer an easy way to trade tokens on different blockchains and exchange value across the ecosystem.

The big innovation exciting venture capital investors is an advanced algorithm that enables low-slippage trading while maintaining high capital efficiency for liquidity providers (LPs).

This has sparked interest and investment from Chamath Palihapitya’s Social Capital, Jump Capital, Multicoin Capital, Solana Foundation, and others, as well as crypto industry leaders from FTX, Okcoin, Curve, Terra, and Stacks.

Dylan Macalinao has been keen to sing the praises of the Solana platform, deeming it a superior ecosystem to the Ethereum network due to its high transactional speed.

“The number of decentralised finance (DeFi) users continues to grow at an impressive pace, increasing by 50% in the first quarter of 2021 alone,” said Macalinao, co-founder and CEO of Saber Labs.

“However, DeFi’s adoption is ultimately limited by the scalability of the most popular blockchains, which have become slower and more expensive during periods of heavy use.

“Compared to Ethereum’s approximate rate of 15 transactions per second (TPS), Solana can support up to 50,000 TPS, representing a 7,500x increase. As Solana’s core cross-chain liquidity network, Saber seeks to help facilitate and accelerate the transfer of assets between Solana and other blockchains.”

Saber has seen extensive growth since its beta launch earlier this year, and the exchange has attracted more than $100 million in liquidity.

It has since become the fourth-largest application on Solana in terms of total value locked (TVL).

“Saber is changing how cryptocurrency moves globally,” said Anatoly Yakovenko, President of the Solana Foundation.

“Saber can do for cross-chain digital asset exchange what TransferWise did for international currency trading.

“Through providing the liquidity foundation for stablecoins on Solana, Saber can unlock the ability for quick, seamless transactions across blockchains.

By being the first Solana-based decentralised exchange to support key assets like Ren Bitcoin and Dai, Saber has quickly grown its global user base as the industry moves towards cross-blockchain interoperability.

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