Paraswap is an interface layer facilitating interactions with decentralized exchanges (DEX). The French company based in Nanterre has just raised $ 2.7 million to expand.
The rise of decentralized finance (DeFi)
It is impossible to miss the rise of decentralized finance on Ethereum. For several months, these protocols which aim to provide the same services as traditional finance, in a more transparent and inclusive manner, have multiplied. The volume of decentralized exchange platforms ( DEX ) is constantly increasing.
Indeed, DEXs are particularly innovative, especially with the arrival of AMMs ( Automated Market Makers ). If Uniswap is leading the way, it now has competitors like Curve Finance (CRV), Balancer (BAL) or SushiSwap (SUSHI). These protocols offer different incentive mechanisms for liquidity providers .
It is therefore becoming increasingly difficult to navigate this jungle and navigate between the different options available to trade a given pair.
Indeed, not all DEXs present in the clearest way the costs of a swap for the user. In addition, the costs of interacting with a new service can be high .
ParaSwap: streamline interaction with decentralized exchanges
ParaSwap responds to this complexity by offering middleware , an interface between the user and the DEXs . The platform aggregates the liquidity available on all these exchanges into a complete API . The service is of course also accessible via a web interface .
At a glance, the user can know the different rates available for his swap . Better yet, ParaSwap uses a routing technique that can lower costs for the user. It is able to distribute transactions over multiple DEXs if this improves the effective cost of the exchange.
ParaSwap also has its own liquidity pool , ParaSwap Pool . On high volume pairs (ether, stablecoins), this service regularly offers the best rates on the market.
The success of ParaSwap can be seen by taking a look at the trade volumes facilitated by the service:
The ParaSwap team announced a fundraising of $ 2.7 million to decentralize the protocol. Indeed, the team wants to make the ParaSwap infrastructure as transparent as possible and integrate the decisions of its community .
32 renowned investors have invested in the project. Among them, we find funds venture capital well known as BlockChain Capital Lemniscap, Coinfund, Spartan Capital, Arrington XRP CMS Holdings, CoinGecko, FTX … But also famous names of cryptosphère as Stani Kulechov (creator of Aave), Zurab Kazhiloti, David J. Namdar, or Arthur Cheong (creator of DeFiance Capital).
The ParaSwap team can therefore move up a gear. From features news will be announced soon. Likewise, it sets up numerous partnerships . The assumed objective of ParaSwap is to become the most accessible and transparent DeFi middleware on the market. To do this, ParaSwap is recruiting: the team is particularly looking for engineers ready to take on new and exciting challenges.