Kolibrio https://www.kolibr.io/, a web3 infrastructure startup, announced it had raised $2 million in a funding round led by Jump Crypto, with participation from Delta Blockchain Fund, Everstake Capital, and other angel investors.
The company aims to solve the Maximal Extractable Value (MEV) problem by offering an on-chain order flow auction system (OFA), which can be used by order flow originators like wallets, node providers, and dApps to benefit the end user.
«We believe order flow auctions and MEV distribution solutions will be important components of the Web3 internet and we share the vision of Kolibrio founders», – says Denys Vashchuk from Everstake Capital, a venture arm of blockchain infrastructure company Everstake https://everstake.one/ running over 8,000 nodes for 70+ blockchain protocols.
MEV is a phenomenon that occurs at various layers of the smart contract blockchains as a result of transaction reordering, front-running, and censorship. It has become a hot topic in the community as it leads to a loss of value for web3 users and undermines the integrity of the ecosystem.
MEV can also be considered a re-imagination of a traditional finance concept known as Payment for Order Flow (“PFOF”).
The funds will be used to advance the development of Kolibrio’s flagship product – BEV Relay, an on-chain order flow marketplace connecting transaction originators with algorithmic trading bots known as searchers.
Launched in Q2 2022, Kolibrio runs OFAs on Ethereum, Avalanche, and Aurora— more blockchains are planned to be deployed throughout 2023.
Startup was founded by Ukrainian entrepreneurs, while the team is fully remote and currently has 8 people based across Europe.
The funding round marks a significant milestone for Kolibrio and demonstrates the growing demand for solutions to the MEV problem. With the support of Jump Crypto, Delta Blockchain Fund, and Everstake Capital, the company is well-positioned to bring its innovative technology to a growing market and help shape the future of DeFi.
For more information, please visit the company’s website, Twitter, or Linkedin page.
