Elixir

Elixir is a decentralized network operating on a Delegated Proof-of-Stake (DPoS) consensus mechanism, engineered to supply liquidity to orderbook-based exchanges. Founded in 2022 by Philip Forte, Christopher Gilbert, and Cole Peterson, the company provides core infrastructure that enables decentralized exchanges (DEXs) to bootstrap liquidity for their trading pairs. Forte's prior experience at a firm that referred projects to large market makers revealed the high costs projects face for liquidity, inspiring the creation of a more accessible model.

The company's primary clients are decentralized exchanges, which integrate the Elixir network to enhance their liquidity. This addresses a key challenge for orderbook DEXs, which have historically struggled with liquidity compared to their centralized counterparts. The business model involves exchanges paying a fee to receive liquidity from the Elixir network, while individual users who supply capital to the network earn rewards, democratizing access to market-making incentives. The network has facilitated integrations with exchanges such as Vertex, Bluefin, RabbitX, and Orderly Network, with plans to integrate with dYdX and others.

Elixir's core function is to allow any user to provide liquidity directly to orderbooks, a role traditionally dominated by institutional firms. Its protocol gathers trading data from various exchanges, which is then verified by validators within the DPoS system to algorithmically deploy liquidity where it's needed, aiming to tighten bid-ask spreads. A key product is deUSD, a collateralized, yield-bearing synthetic dollar designed to serve as the preferred collateral within the Elixir ecosystem. This synthetic asset is part of a strategy to bring real-world assets (RWAs) from major funds like BlackRock and Hamilton Lane into the DeFi space.

The company has demonstrated significant growth, securing over $17 million in funding across several rounds. This includes a $2.1 million seed round in January 2023, a $7.5 million Series A in October 2023 at a $100 million valuation, and an $8 million Series B in March 2024, which elevated its valuation to $800 million. The Series B was co-led by Mysten Labs and Maelstrom, the family office of Arthur Hayes, who has supported the company since its seed round. Keywords: orderbook liquidity, decentralized exchanges, DPoS network, market making, liquidity provision, DeFi infrastructure, Delegated Proof-of-Stake, synthetic dollar, deUSD, real-world assets, RWA, crypto liquidity, exchange integration, algorithmic market making, liquidity mining, decentralized finance, blockchain network, Philip Forte, crypto trading protocol, validator network, on-chain liquidity, cross-chain liquidity, capital efficiency