Uniswap Secures $165M in Series B Round to Bring Web3.0 to Everyone

Leading decentralized exchange (DEX) Uniswap Labs has completed its Series B funding round, securing $165 million from investors.

According to the announcement made by its CEO, Hayden Adams the round was led by Polychain Capital. Other existing investors including a16z crypto, Paradigm, SV Angel, and Variant also participated in the round.

Consequently, upon completing the Series B round, the firm attained a $1.66 billion valuation after securing funds from investors at a period when the market downturn watered down Investors’ appetite.

Interestingly, the raise is the highest ever to date for the exchange which commands 64% of all DEX trading volumes. Coincidentally, the raise is also the largest ever for the decentralized finance sector which reportedly grew faster than its centralized counterparts in the last two years.

Earlier in the month, the exchange had announced its plans to raise capital between $100 million and $200 million at a $1 billion valuation. The firm was in talks with investors including Polychain Capital at the time to raise funds to expand and broaden its services.

While speaking on the fund-raise, Hayden said the success of the round and Uniswap’s popularity is validation for decentralized projects as many centralized projects failed during this market downturn compared to their decentralized counterparts. 

For instance, centralized platforms like Celsius and Voyager have suffered liquidity crises and subsequently filed for bankruptcy protection while working on restructuring plans. Meanwhile, decentralized platforms like Uniswap and Maker DAO have continued to weather the storm without incident.

Uniswap to launch new products

With the added funds, Uniswap will scale its growth as it will invest more in its web app and developer tools.

The firm will also launch its Non-fungible Token (NFTs) aggregator that will unlock new interactions between tokens and NFTs and offer support for mobile users. Uniswap will also focus on developing more services that will make web3.0 more accessible.

According to Adams, the DEX is currently not profitable, but it hopes to become financially sustainable in the coming years after expanding its product offerings with funds from this round.

Earlier in the week, Nevermind, an Ethereum development client successfully transpiled and compiled an offshoot of Uniswap, Uniswap v3.