Cyclos, the first concentrated liquidity market maker on Solana, has recently attracted $2.1 million from a private and a public round. Participants in the round include CMS Holdings, Hashkey, Solana Capital, Huobi Ventures, Coin98 Ventures, MXC, Gate.io, Skyvision Capital, Petrock Capital, Illusionist Group, Cryptomeria Capital, DigiStrats and Youbi Capital.
According to the company, the funds will be used to developed the first concentrated liquidity AMM on the Solana blockchain.
Thanks to the use of the Solana blockchain, it is possible to create concentrated liquidity tethered to Serum, an order book-based decentralized exchange.
The funds which committed to Cyclos are used to provide liquidity on Serum DEX. As a result, there is no need to bootstrap volume and initial liquidity for the AMM pools, reducing impermanent loss risk for new pairs and guaranteeing some income for LPs.
Jason O’Brien, a Cyclos spokesperson, said:
“We’re excited to fully begin the Cyclos journey with the strong backing we received. Cyclos introduces a myriad of functionalities to DeFi on Solana that, until now, were not possible with existing infrastructure. Range-limit orders, capital efficient liquidity pool bootstrapping and orderbook-based stable asset market making are all possible due to Cyclos’ innovative approach to concentrating liquidity providers’ assets.”