Uniswap Labs is looking to raise $100 million to $200 million in a new equity round at a $1 billion valuation. Uniswap, the maker of the popular Ethereum-based decentralised exchange (DEX), is reportedly still working out the details of its upcoming capital raise.
The upcoming fundraising rounds that are being engaged with Uniswap involves Polychain and Singapore’s sovereign fund, in the hopes of raising an equity round of $100 to $200 million valued at about $1 billion.
Uniswap Labs was one of the major catalysts that led DEFI to explode in popularity and adoption back in 2020. The platform lets users access different types of cryptocurrencies and transact through exchanging or swaping all kind of digital assets.
Also it Uniswap plays the role of a crypto lending platform. During that period, a number of the largest DeFi exchanges such as Uniswap saw their value jump from under $1 billion to $10 billion, and ultimately hit a value of $100 billion.
“Moreover, in end of 2020, Uniswap managed to beat Coinbase crypto exchange in terms of trading volume which is phenomenal.”
The startup is engaging with a number of investors, including Polychain and one of Singapore’s sovereign funds, to raise an equity round of $100 million to $200 million at a valuation of about $1 billion, two of the sources said, who, like others, requested anonymity sharing private information.
Uniswap Lab’s capital increase is expected to be worth $1 billion after the fundraising campaign is completed, though the final figure is yet to be discussed and agreed upon, based on the outcome of further negotiations.
DeFi protocol is one of the largest decentralised exchanges that allows users to trade a plethora of tokens, and its market share is around 47%, according to Blockworks.
“The Uniswap Decentralized Autonomous Organization (DAO) also has the biggest crypto-treasury, with around $2.7 billion in its reserves according to DeepDAO.”
In the past couple of months, the Uniswap community has been looking at different ways to generate revenue, with the aim of helping the protocol continue to grow.
Vitalik Buterin, Founder of Ethereum, has also highlighted the strength of the Uniswap platform, stating that it is a decentralized asset exchange that allows transactions to take place in just 30 seconds.
Uniswap currently is one of the biggest decentralized exchanges in the world in terms of volume traded as well as Total Value Locked (TVL). Millions of transactions are conducted on its platform which makes it a real leader in the crypto DEX space.