Reya Network Launches with $10M to Address Mass Liquidity Fragmentation in DeFi

The company is building a shared liquidity protocol that creates instant shared liquidity for all exchanges operating within the Reya ecosystem.
Image source: Reya Network

Quick take:

  • The fundraising attracted participation from leading VCs including Framework Ventures, Coinbase Ventures and Wintermute.
  • Reya also boasts backing from Brevan Howard Digital, Amber, Robot Ventures and Fabric Ventures.
  • The announcement comes ahead of Reya’s scheduled Liquidity Generation Event in April.

Reya Network a shared liquidity protocol for decentralised finance applications has emerged from stealth with a $10 million funding round backed by Framework Ventures, Coinbase Ventures and Wintermute.

Other investors in the company include Brevan Howard Digital, Amber, Robot Ventures and Fabric Ventures, as well as, angel investors Stani of Aave and Ryan and David of Bankless Ventures, among others.

Reya Network’s shared liquidity protocol is built on three key pillars including, Liquidity, Capital Efficiency and Performance. Its platform aims to address the challenge of mass liquidity fragmentation as exchanges built on generalised rollups continue to compete for a limited supply of liquidity.

“This leads to shallower markets across all exchanges, hurting traders and market participants,” Simon Jones, co-founder and CEO of Reya Labs wrote in a blog post on Medium. “Generalisable designs also inherit issues such as front-running and harmful-MEV, and have performance limitations due to the inability to parallelise execution.”

According to Jones, his company shifts the paradigm of how developers think about scaling with a network design creates the deepest liquidity, best capital efficiency and highest performance for DeFi traders and liquidity providers.

Reya has developed a network design that focuses on optimising processes for a simple use case.

“By focusing on a single use case, we move beyond technical improvements only, and also focus on financial logic and liquidity. Hence Reya Network focuses on DeFi trading by optimising for the three pillars of Liquidity, Capital Efficiency and Performance,” Jones writes.

To kick off its roadmap, the company has scheduled a Liquidity Generation Event (LGE) in April, which will be shortly followed by the deployment of a fully functional perpetual DEX, Reya Exchange.

According to Reya, capital staked into its network is used productively to support trading via a novel passive liquidity pool mechanism, thus creating instant shared liquidity for all exchanges operating within the Reya ecosystem. The platform also acts as a clearing protocol across exchanges.


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