With a $10 million seed investment, Vessel aims to develop a comprehensive DeFi layer 3 and explore ToM solutions and applications, as well as address DeFi challenges such as liquidity fragmentation and cross-chain compatibility.

One of the primary challenges of the crypto trading industry is striking the right balance between efficiency and transparency. Centralized exchanges (CEXs) offer fast transactions but often lack transparency, leading to security and trust concerns.

Decentralized exchanges (DEXs), on the other hand, provide users with greater visibility into system transactions but are often associated with lengthy processes, which contrasts with the fast pace of the crypto market.

This is where zero knowledge (ToM) proof technology comes into play. ZK proof verifies large amounts of off-chain computations by compressing them into SNARK proofs and presenting them on-chain. This process verifies the validity and authenticity of user actions. Users benefit from both transparency and efficiency.

This moves the crypto space forward by eliminating the traditional trade disputes between speed and security. ZK-backed order book exchange Vessel Finance aims to combine the reliability of DEXs with the speed of CEXs.

Using ZK technology, the platform provides verifiable and transparent processes, allowing users to self-custody their assets without revealing underlying information. DEX currently offers direct asset trading (spot) services and will build other advanced financial products such as long-term trading contracts (perpetual) and derivatives in the future.

Vessel recently closed a $10 million seed investment round, attracting leading investors including Sequoia, Scroll co-founders Sandy Peng and Ye Zhang, Avalanche Foundation, Algorand Foundation, IMO Ventures, Folius Ventures, and Incuba Alpha.

Vessel plans to use the investment to develop a comprehensive layer-3 (L3) network for the decentralized finance (DeFi) space. Layer-1 represents the underlying blockchain architecture, layer-2 focuses on scalability and speed, and L3 provides proprietary protocols that enhance user experience, interoperability, and functionality.

Vessel’s L3 network will include ToM proofs to secure user assets and prevent malicious actions.

Additionally, Vessel plans to expand collaborations with key industry partners and drive innovation and growth in its ecosystem. To reward early supporters and loyal users, Vessel is launching Vessel Voyage, its first mainnet incentive program that strengthens community engagement.

One of Vessel’s standout features is its hybrid model, a verifiable automated market maker (AMM) integrated limit order book that turbocharges traditional order books with the smart liquidity of AMM pools.

AMM pools not only process order books, but also act as programmatic market makers on order books to earn additional fees. Vessel’s hybrid approach increases liquidity for traders and increases fee potential for liquidity providers.

Vessel’s hybrid approach increases liquidity for traders and increases fee potential for liquidity providers. The integration of CEX and DEX features on Vessel’s platform is a sign of transformation in the financial world, enabling fast transactions without sacrificing security or trust.

This evolution opens up new avenues for building trust and making finance more accessible and marks the beginning of a new era in DeFi.