Saber received $7.7 million in funding from Chamath Palihapitiya’s Social Capital, Jump Capital, and other investors. Saber wants to expand its three-person staff and support additional assets on its platform now that it has new funding.
Saber Labs, the Solana-based cross-chain exchange for trading stablecoins and wrapped tokens, has secured $7.7 million in a preliminary investment round.
Race Capital led the round, with Chamath Palihapitiya’s Social Capital, Jump Capital, Multicoin Capital, and the Solana Foundation joining in. Angel investors included Tristan Yver of FTX, Jason Lau of OKcoin, Julien Bouteloup of Curve Finance, Jeff Kuan of Terraform Labs, and Ryan Shea of Stacks.
Saber Labs co-founder and CEO Dylan Macalinao told The Block that this was an equity investment round. Saber’s staff will be able to grow, and the platform will be able to accommodate additional assets, he added.
Saber Labs presently has a three-person staff, but Macalinao expects to add approximately seven individuals by the end of the year. Saber now supports assets from the Ethereum, Terra, Solana, and Bitcoin blockchains, according to Macalinao, and it is seeking to support “every major chain, particularly Polygon and Celo.”
Saber, which was launched last month and is comparable to the Ethereum-based Curve exchange, allows users to switch between stablecoins and wrapped tokens. Saber also operates as an automated market maker or AMM by allowing users to deposit assets to create liquidity and earn a return through transaction fees and liquidity incentives.
Saber’s competitive advantage, according to Macalinao, is the amount of assets it supports. “On Solana, Saber’s primary rival is Mercurial Finance, which covers only four assets vs Saber’s continuously expanding 15+,” he added. “Since a result of this, Saber has been able to draw substantially more liquidity (now over 2x more), as it helps to connect communities throughout the blockchain.”
Saber has experienced rapid growth since its introduction just over two months ago. According to tracker DefiLlama, Saber is the third-largest decentralized application on Solana in terms of total value locked (TVL). Saber’s TVL is currently above $126 million, second only to Raydium and Serum.
Curve, on the other hand, according to DeFi Pulse, has a TVL of about $8.5 billion. “We see a strong possibility to position Saber as the market leader in stablecoin exchanges, comparable to how Curve is so powerful inside the Ethereum environment,” Macalinao said of the Solana ecosystem.
Solana is a cryptocurrency that competes with Ethereum in terms of transaction speed and cost. Nodes on Solana take less time to validate transactions, according to Macalinao, and block times are as low as 400 milliseconds, compared to 15 seconds on Ethereum. As a result, he claims, Solana can handle more over 50,000 transactions per second (TPS), compared to about 30 TPS on Ethereum.