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Vessel Finance has successfully raised $10 million in a seed funding round, attracting investments from prominent players in the Web3 sector. This funding will be utilized to develop a comprehensive layer-3 (L3) network aimed at addressing ongoing challenges in the decentralized finance (DeFi) sector.
Funding and Development Goals
This funding round has equipped Vessel with the necessary capital to develop its L3 network. The network will focus on addressing issues such as liquidity fragmentation and cross-chain compatibility, which are critical for the growth of DeFi.
By leveraging zero-knowledge (ZK) proof technology, Vessel aims to improve both the efficiency and transparency of crypto trading. This innovative approach tackles the critical balance that has been elusive in the industry.
Bridging the Gap Between CEXs and DEXs
The crypto trading ecosystem has been marked by a contrast between centralized exchanges (CEXs) and decentralized exchanges (DEXs). CEXs provide rapid transaction speeds but often lack transparency, raising security and trust concerns among users.
In contrast, DEXs offer greater operational visibility but usually involve slower processes, which can be detrimental in the fast-paced crypto market. Vessel Finance seeks to bridge this gap by utilizing ZK technology, which compresses extensive off-chain computations into succinct non-interactive arguments of knowledge (SNARKs).
Innovative Trading Solutions
Positioning itself as a ZK-powered order book exchange, Vessel Finance combines the reliability of DEXs with the speed of CEXs. By implementing ZK technology, the platform guarantees verifiable and transparent processes while allowing users to maintain self-custody of their assets.
This focus on security and efficiency is expected to attract a diverse user base, from experienced traders to newcomers in the crypto space. Currently, Vessel offers direct asset trading services and plans to expand its offerings to include long-term trading contracts and advanced financial products such as derivatives.
Community Engagement and Incentives
As part of its commitment to community engagement, Vessel is launching its first mainnet incentive program, called Vessel Voyage. This program aims to reward early supporters and loyal users, fostering a strong community around the platform.
Additionally, the L3 network will incorporate ZK-proofs to secure user assets and reduce the risk of malicious activities. Vessel intends to collaborate with industry partners to drive innovation and growth within its ecosystem.
Hybrid Model and Enhanced Liquidity
A standout feature of Vessel Finance is its hybrid model known as VAELOB, which stands for verifiable automated market maker (AMM)-embedded limit order book. This innovative approach enhances traditional order books by integrating smart liquidity from AMM pools.
The AMM pools not only facilitate the processing of order books but also serve as programmatic market makers, generating additional fees for liquidity providers. This dual functionality is expected to significantly enhance liquidity for traders while increasing the fee potential for those providing liquidity.
Transformative Shift in the Financial Landscape
The integration of CEX and DEX features within Vessel’s platform represents a transformative shift in the financial landscape. By enabling fast transactions without compromising security or trust, Vessel is paving the way for a new era in DeFi.
This evolution is particularly timely, as the demand for more efficient and transparent trading solutions continues to grow among investors and traders alike. As the DeFi space matures, platforms like Vessel Finance are poised to play a crucial role in shaping the future of digital finance.
Future Prospects
With its ambitious plans and innovative technology, Vessel Finance is not just another player in the DeFi arena; it is a potential game-changer that could redefine how users interact with decentralized finance. As the platform continues to develop and expand its offerings, it will be interesting to observe its influence on the broader crypto trading landscape.
Vessel Finance’s approach to addressing the challenges that have long affected the industry positions it as a key player in the evolving DeFi ecosystem. The focus on security, efficiency, and community engagement will likely attract a wide range of users and contribute to the platform’s success.
📎 Read the original article on cointelegraph.com
