- Flood, a decentralized exchange (DEX) aggregator, has raised $5.2 million in a seed round of funding.
- The investment comes from Bain Capital Crypto, Archetype, and Robot Ventures funds.
- The funds will be used to expand the team and integrate with more decentralized exchanges.
Flood, a DEX aggregator, has successfully completed its seed investment round, securing $5.2 million from investors such as Bain Capital Crypto and Archetype. Robot Ventures also participated in the funding, according to The Block.
Flood operates as a protocol for routing, managing, and settling trades. While currently running on Arbitrum One, the team plans to make the DEX aggregator available on Ethereum, Base, and Optimism networks in the near future.
One of the key features of the Flood protocol is optimal routing, ensuring transactions are executed at the best prices. Unlike other aggregators that utilize a request-for-quotation (RFQ) model, Flood believes this approach is less effective due to potential collusion resulting in unfavorable prices.
“Most aggregators use a request for quotation (RFQ) model.. We find it ineffective because people can collude to make trades at bad prices,” a Flood representative explained.
The project also operates its own DEX called FloodSwap, which has generated over $1.3 million in trading volume since its launch in November 2023. Approximately 30,000 transactions have been conducted on the DEX between November and February, as reported by the Dune platform.
The Flood team plans to utilize the newly raised capital to expand its workforce and further integrate with decentralized exchanges. Although currently focused on the Ethereum ecosystem, the team remains open to exploring other blockchain networks.
“Democratizing liquidity and settlement is the next step in creating a fully accessible cryptocurrency ecosystem. Flood aims to simplify the complex world of trading through innovative tools that traditional exchanges have yet to explore,” stated the team.
Earlier in February, hybrid cryptocurrency exchange Cube.Exchange raised $12 million in investments.