Cyclos Raises $2.1M to Build Concentrated Liquidity AMM on Solana

Cyclos will focus on providing concentrated liquidity to DeFi traders.

Cyclos goes to Solana.

Cyclos closes USD 2.1 million financing round

Cyclos, a new DeFi project based in Solana, has raised a total of $2.1 million from a private and a public round. The funding will be used to create the first concentrated liquidity automated market maker (AMM) on Solana, enabling a variety of features never before seen in the blockchain ecosystem.

Well-known investors such as CMS Holdings, Hashkey, Solana Capital, Huobi Ventures, Coin98 Ventures, MXC, Gate.io, Skyvision Capital, Petrock Capital, Illusionist Group, Cryptomeria Capital, DigiStrats and Youbi Capital took part in the private financing round.

Cyclos offers a unique take on the idea of ​​concentrated liquidity pioneered by Uniswap V3. By leveraging Solana and its low-latency, high-throughput blockchain, it is possible to create concentrated liquidity tied to Serum, an order book-based decentralized exchange. This provides all the capital efficiency benefits inherent in concentrated liquidity, with few drawbacks.

Funds tied to Cyclos are used to provide liquidity for Serum DEX according to the ranges set by the LPs. Using Serum means there is no need to bootstrap volume and initial liquidity for the AMM pools, reducing the risk of temporary loss for new pairs and guaranteeing liquidity providers some income immediately. Cyclos is particularly useful for stablecoin pairs, where it becomes possible to make markets without the use of algorithms. In addition, Cyclos enables new features such as range orders and stop-loss/limit orders, the first for Solana AMM. Jason O’Brien, a spokesperson for Cyclos, said of the project’s future plans:

"We are excited to fully begin the Cyclos journey with the strong support we have received. Cyclos introduces a variety of features to DeFi on Solana that were not previously possible with existing infrastructure. Range-limit orders, capital-efficient bootstrapping for liquidity pools, and order book-based stable asset market making are possible thanks to Cyclos' innovative approach to concentrating the assets of liquidity providers."

Dan Matuszewskim, partner at CMS, added that Cyclos is in a strong position to succeed with Solana. He said:

"CMS is pleased to support Cyclos in their mission to bring concentrated liquidity to Solana. The growing Solana user base has increased demand for a best-in-class AMM experience. The team is strong and well-positioned to have a significant impact on the continued development of Solana's DeFi ecosystem."

Cyclos is the first concentrated liquidity market maker on Solana. It enables liquidity providers to maximize the return potential of their assets by placing individualized price curves directly on Serum's order books. The V1 of the product is scheduled to launch in the third quarter of 2021.