The team at Magpie Protocol reveals that they have finalized a $3M seed funding round.
According to the Magpie Protocol team, this is “a huge milestone and just the beginning of [their] journey as [their] Alpha test is starting very soon.” They want to give a huge shout-out to the community for their continued support and enthusiasm for the project as well as introduce some of their investors.
Through Jump Crypto’s assistance, Magpie Protocol claims it is “poised for success while additionally being supported by notable investors such as Sandeep Nailwal, GSR Markets, Parafi Capital, Republic Capital, Big Brain Holdings, Serafund, Faculty Group, MH Ventures, D1 Ventures, Arkstream, Apollo Capital, and more.”
After seeing what the team at Magpie Protocol are developing and offering to the crypto space, Jump Crypto, who looks for projects full of passion for DeFi and focused on innovation and is full of engineers, investors, and traders consumed by building the future of DeFi, made the decision “to cement itself as the lead investor in the project.”
Next is Republic Capital, which “selects investments based on business fundamentals with a focus on unit economics, strategy and the opportunity to disrupt a market.” All believe in Magpie Protocol to be “a part of this changing of the future of DeFi and the global market.”
Third is GSR Markets, who partners “with brave and brilliant entrepreneurs who are building the future of finance.” GSR works “with cryptocurrency projects at crucial points in their life cycle, providing robust liquidity that helps enable their technology.” Together, they’re going to focus on “changing the landscape of DeFi and the global economy.”
Magpie is “a project that was incubated by Saxon, who helps idea-stage crypto entrepreneurs to launch game-changing DeFi and infrastructure projects.” They provide holistic support, “spanning from product-market fit and business development to tokenomics and fundraising.”
Magpie Protocol claims it is “a decentralized liquidity aggregation protocol for cross-chain swaps aiming to provide the best deal on any asset across top blockchains without the need to directly bridge assets.”
Their novel architecture “uses bridges primarily as a data transfer layer to communicate swap signals between chains.” The result is reportedly “an extremely fast and secure solution to cross-chain swaps.”
With bridge security concerns being at the forefront of DeFi right now, “a crucial component in promoting the trustless and inclusive foundations upon which DeFi is built.” Most bridges are custodial, “meaning users must entrust their tokens with the security of the bridge by locking assets in a smart contract.”
This centralization of bridged assets “creates single points of failure, which can put multiple ecosystems in danger if they are exploited.” A recent report by Chainalysis, a blockchain data platform, “estimates a total of $2 billion in cryptocurrency has been stolen from cross-chain bridges in 2022 alone.”
This goes “to prove that creating a secure cross-chain liquidity aggregation solution is a must in DeFi.”
Magpie’s architecture “uses bridges to communicate swap signals between chains, without the need to lock, burn, or mint assets on or within a bridge.” By combining single-asset liquidity pools with a proprietary liquidity aggregation protocol, Magpie is chain-agnostic, “meaning it is compatible and able to initiate swaps for the desired token on any chain, without limiting factors as other aggregation protocols, and whether or not the chain is EVM or not.”
Not only does this result “in near-instant finality for users, but it also enables Magpie to be fully non-custodial, by keeping assets in control of the user rather than a third party or bridge, which greatly improves security of users’ assets.”
Dr. Ali Raheman — CEO & Founder, said:
“I’d like to personally thank all of our investors and team members for your support in Magpie. We’re all incredibly proud of the work the team has done thus far, but it’s only the beginning. Now the work begins for the next round of funding as well as preparing to launch our private and public alpha testing events in the coming weeks. It has been an amazing journey so far and we have a lot in store for us in the coming years.”
At the time of writing, Magpie Protocol is compatible “with many established chains and DeFi protocols, including Ethereum, Polygon, Avalanche, and Binance Smart Chain.” Additionally, they have announced plans “to expand to Fantom, Solana, and other blockchains in the near future, so stay tuned.”