SundaeSwap Labs, a Decentralized Finance (DeFi) startup based in California, has raised $1.3 million in seed funding to develop its decentralized exchange (DEX) in the Cardano network.
The seed funding round was led by cFund, a venture capital firm under Wave Financial Group focused on investing in the blockchain industry. Other investors who participated in the round were Double Peak Group and Alameda Research. David Roebuck, Principal at Wave Financial who is in charge of cFund, referred to the firm’s participation by stating:
“Our mandate is to bring world-changing ideas and solutions on the Cardano blockchain to market faster. We do this by finding ambitious founders who have solid business ideas and the skills to turn those ideas into reality. The SundaeSwap team is developing a platform that is well-positioned to become a market leader, and we’re pleased to be able to help them reach their goals through this investment.”
SundaeSwap Labs was founded in 2021 with the mission to contribute to the development of the SundaeSwap ecosystem, which includes a DEX specifically designed for the Cardano Network. The platform will provide investors with new means to use their crypto assets without having to rely on centralized platforms while enjoying the high performance and low transaction fees provided by Cardano.
The capital raised through the seed funding round will allow the startup to scope out the company’s broader plans for DeFi on Cardano and to boost the development of additional features for the DEX. Mateen Motavaf, Chief Executive Officer of SundaeSwap Labs, said about the protocol’s future:
“The recent introduction of smart contracts to the Cardano blockchain has created a significant opportunity for the DeFi community on Cardano. cFund’s investment is an endorsement of the work our team has done to build a sustainable, long-term business designed to provide the Cardano community with the tools and services it needs to create value and fully realize its vision of enabling economic empowerment for those who need it most.”
The Cardano network was designed to be an alternative to networks like Ethereum by providing increased scalability and performance through rigorous scientific research. IOHK, the company behind the network, has published to dat more than 115 peer-reviewed articles on topics relevant to blockchain and cryptocurrency, all of which have helped lead its development efforts.
The network recently reached a major milestone with the deployment of its Alonzo update, which means developers are now able to access advanced functionalities like Smart Contracts. The Alonzo HardFork will allow the creation of complex native platforms by allowing projects like SundaeSwap to become fully operational, which in turn will expand the capabilities of the network.
With crypto continuing to gain momentum by the day, SundaeSwap Labs expects to become a major contributor to innovation and adoption efforts that have characterized the industry. While the app is still not available, the approach followed by the DeFi startup has resulted in support from the Cardano Foundation and personalities like Charles Hoskinson, the creator of Cardano.