Cyclos Raises $2.1M to Develop the First Concentrated Liquidity AMM on Solana

Cyclos, a concentrated liquidity market maker, built on Solana, has announced that it has raised $2.1 million in a private and public funding round, which saw the participation of notable investors in the industry.

Per a press release shared today with CryptoPotato, the investors involved in the just-concluded funding round include Huobi Ventures, CMS Holdings, Hashkey, Coin98 Ventures, Solana Capital, Gate.io cryptocurrency exchange, Youbi Capital, among several others.

Funds to Boost Liquidity & Solana DeFi Space

The funds realized will be used to develop the first concentrated liquidity automated market maker (AMM) on the Solana blockchain.

Notably, with the funding, liquidity can be provided on the decentralized exchange Serum based on the ranges specified by the liquidity providers, the announcement reads. Part of the money will be used to deploy significant features and upgrades on the platform.

Cyclos AMM Journey Kicks Off

Jason O’Brien, a spokesperson for Cyclos, said in the PR that with the funding, the project could commence its journey of becoming a concentrated liquidity AMM.

According to O’Brien, since the inception of Cyclos, the firm has contributed immensely in deploying significant features and services to the Solana-based decentralized finance (DeFi) ecosystem.

Most of the functionalities currently being used on the Solana blockchain are not possible with the network’s existing infrastructures.

However, due to the project’s launch on the network, several features such as range-limit orders, capital-efficient liquidity pool bootstrapping, and order book-based stable asset market making are all possible due to the project’s approach to concentrating liquidity providers’ assets, O’Brien added.

Cyclos Unique Concentrated Liquidity Offering

The project’s concentrated liquidity powered by Uniswap V3 offers a new perspective on how the market will determine the distribution of liquidity.

In an effort to develop unique concentrated liquidity that is connected to popular decentralized exchange Serum, Cyclos chose to launch on the Solana blockchain, taking advantage of the network’s low-latency and high throughput blockchain.