Osmosis, a decentralized exchange (DEX) based on the blockchain platform Cosmos (ATOM), announced on the 28th that it has raised $21 million through a token sale.
The investment round was led by cryptocurrency venture capital firm Paradigm, with participation from Robot Ventures, Nascent, Ethereal, and Figment.
Cosmos blockchain currently supports over $130 billion in crypto assets across various decentralized applications (dApps). Osmosis has grown to become the largest DEX on Cosmos since it launched in June 2021. It has its own token OSMO used for staking and governance.
Osmosis aims to expand the Osmosis automated market maker (AMM) protocol with its token sale. AMM is a market maker whose order execution is automated by a pre-programmed algorithm.
“Osmosis is our first AMM investment outside of the Ethereum ecosystem,” said Charlie Noyes, investment partner at Paradigm.
“The launch of IBC, Cosmos’ cross-chain interoperability protocol, kicked off a Cambrian explosion of developer activity and experimentation. Osmosis is the natural center of gravity for liquidity in Cosmos’ emerging DeFi ecosystem.”