Cypher Capital, a Dubai-based multi-strategy venture capital firm announced the completion of a six-figure investment into Wallchain, a solution for businesses in the short term and individuals in the longer term that provides protection against unfair practices used by miners to extract value and capture arbitrage profits generated from DeFi transactions. The investment will be used to drive Wallchain’s research into web3 insights and to set them on the path to exponential growth.
What is Wallchain?
Transactions initiated on DEXes (decentralized crypto exchanges) and wallets create opportunities for specialized bots (called MEV bots) that identify and manipulate the sequence of these transactions to front-run users and/or generate arbitrage. These opportunities are opaque and end users rarely see them. Since 2021, around $700m has been extracted by MEV bots. Wallchain tackles this growing problem by integrating its Anti-MEV solution within DEXes and wallets that help capture these profits right when they originate at the source.
The solution in simple terms, inserts a hedging transaction within a user transaction, fully eliminating the possibility of MEV. The hedge generates a profit which is then distributed to the platform and the end user as a cashback creating a win-win scenario for both parties to integrate Wallchain.
The Co-Founders of Wallchain, Yurii Kyparus & Max Bevza, have broad web2 experience having held roles with luminary firms such as Google & Meta.
Yurii Kyparus, the co-founder of Wallchain said: “We entered MEV in 2021 and found it to be an extremely competitive and toxic space. To create a healthier environment and bring value to the community, we built Wallchain. To continue our growth and launch a new solution, we needed partner support. The investment from the visionaries at Cypher Capital will allow us to continue growing and increase visibility on our platform. We are tremendously grateful to the team at Cypher Capital and
we are excited to leverage their in-depth knowledge of the Web3 space as we continue to grow.”
Bill Qian, Chairman of Cypher Capital added, “Wallchain is the missing piece that activates true value for businesses and end users in DEXes; the company has got almost unlimited scope for exponential growth and we are proud to be a part of this journey. Their impressive traction in the market, approach, proven technology, and partnerships with market-leading exchanges, along with strong investor support to date and an ambitious team of start-up veterans and developers, has them well positioned to deliver on a truly sophisticated vision.”
Cypher Capital invests in companies building businesses in Web3 at the blockchain protocol & infrastructure level and offers efficient market access to markets in the MEA region and across the globe. Beyond this, we help build partnerships with start-ups to help them establish relationships with major companies.