Li.Fi Raises $17.5M to Simplify Multichain Liquidity and Data Gateway for Web3 Users

Li.Fi, a Berlin-based multichain liquidity and data gateway provider, recently raised $17.5 million in a Series A funding round co-led by CoinFund and Superscrypt. The funds will help Li.Fi implement its long-term strategy, which aims to increase the number of users in Web3 by enabling seamless trading of tokens and orders across any chain. According to Philipp Zentner, CEO at Li.Fi, this will be achieved through the creation of decentralized finance (DeFi) infrastructure that can be integrated into applications.

The Reemergence of Decentralized Finance (DeFi)

The collapse of centralized crypto exchange FTX has brought decentralized finance (DeFi) back into the spotlight. According to a research note by investment firm Bernstein, DeFi is experiencing a revival that is “far more sustainable, scalable, transparent, and with improving token economics.” Li.Fi is playing a crucial role in this revival by helping developers navigate the complex landscape of layer 1, layer 2, and layer 3 blockchains, bridges, and decentralized exchanges that exist in DeFi.

Li.Fi’s Role in DeFi

Li.Fi offers an API that developers can use to build prototypes and go to market faster. This API aggregates the most crucial DeFi infrastructure, making it easier for developers to build on the front-end infrastructure and fragmented liquidity. By doing so, Li.Fi takes on the integration maintenance involved in building DeFi infrastructure, allowing developers to focus on building their applications.

Read also: What Are the Most Important Differences Between DeFi and Web3?

The Importance of Multichain Liquidity

Li.Fi’s mission to bring more users to Web3 by enabling seamless trading of tokens and orders across any chain is only possible because of the importance of multichain liquidity. Without multichain liquidity, it is difficult to trade tokens and orders across different chains. Li.Fi’s API aggregates the most crucial DeFi infrastructure, providing developers with access to multichain liquidity and enabling seamless trading across any chain.

The Role of CoinFund and Superscrypt in the Funding Round

CoinFund and Superscrypt co-led the Series A funding round, providing Li.Fi with the resources it needs to execute its long-term strategy. Bloccelerate, L1 Digital, Circle, Factor, Perridon, Theta Capital, Three Point Capital, and Abra were among the other participants in the funding round. Li.Fi had previously raised $5.5 million in a funding round last July that was led by 1kx.

Conclusion

Li.Fi’s recent $17.5 million funding round will help it achieve its mission of bringing more users to Web3 by enabling seamless trading of tokens and orders across any chain. By aggregating the most crucial DeFi infrastructure, Li.Fi is making it easier for developers to build on the front-end infrastructure and fragmented liquidity, reducing the integration maintenance involved in building DeFi infrastructure.

FAQs

Q1. What is Li.Fi?

A1. Li.Fi is a Berlin-based multichain liquidity and data gateway provider that helps developers navigate the complex landscape of layer 1, layer 2, and layer 3 blockchains, bridges, and decentralized exchanges that exist in DeFi.

Q2. What is DeFi?

A2. DeFi, short for decentralized finance, is a financial system built on blockchain technology that is open, transparent, and accessible to anyone.

Q3. Why is multichain liquidity important?

A3. Multichain liquidity is important because it enables seamless trading of tokens and orders across different chains.

Q4. Who led Li.Fi’s Series A funding round?

A4. CoinFund and Superscrypt co-led Li.Fi’s Series A funding round.

For more articles visit: Cryptotechnews24

Crypto Tech News 24