Headlined by market-maker GSR, these new backers will drive the development and migration of Lattice’s DeFi exchange solution
Lattice Exchange (LTX), a decentralized venue that aims to advance digital-asset trading, announced today that it has received investment from multiple companies, led by global digital-asset market maker GSR. With this backing, which includes both financial support and operational counsel, LTX will have the resources and expertise to help achieve its ambitious product strategy for 2021.
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LTX has evolved in parallel to the emergence of the $10B+ decentralized finance (DeFi), which has seen exponential growth since the start of 2020. LTX aims to avert the cost, speed, scaling and data processing issues associated with DeFi exchanges and applications on base layer protocols (such as Ethereum). After launching its MVP in late 2020, the LTX will port its solution on Constellation’s Hypergraph network, which enables a faster, more secure and structured way to trade.
As one of LTX’s lead backers, GSR will aid the company in its development of algorithmic trading capabilities and the launch of its exchange. GSR is one of the digital asset space’s most prominent market-makers, with extensive experience in market structure, solving liquidity challenges and supporting the launch of promising new cryptocurrency and DeFi projects.
Cristian Gil, GSR Co-Founder, said: “DeFi continues to be the epicenter of some of the most interesting developments in digital asset trading. The innovations that companies like LTX are bringing to the market will solve many of the challenges that currently impede cryptocurrency market structure from reaching its full potential. We’re proud to be supporting this project and helping to ensure a truly institutional-grade experience for traders.”
Ben Jorgensen, Co-Founder of Lattice and CEO of Constellation Network states, “When we founded Constellation in 2017, our goal was to build a layer 1 network that could scale to meet the data demands of real world applications. Lattice is an application, built on Constellation, that will advance the financial services industry and bridge cryptocurrency with main street finance.”
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Mathias Goldman, COO of Constellation and Co-Founder of Lattice, “When building robust applications in finance, we need to think about retail traders as well as institutions. Lattice will provide robust solutions that place the small person as a priority in the digital asset ecosystem.”
The migration to Constellation’s Hypergraph Transport Protocol (HGTP) is a core element of LTX’s product strategy. Leading cryptocurrency market participants have recognized the shortcomings of other base layer protocols, such as high and variable transaction fees. This prevents institutional traders from creating predictive revenue streams and presents liquidity concerns that may stunt DeFi adoption.
Constellation’s Network, which is feeless and built for economic and technical scalability, addresses these concerns. While many DeFi projects are strong from a product perspective, they often lack the institutional-grade communications protocol needed to create a market structure to match that of traditional securities markets.
