Bitflow Labs, a decentralized exchange aiming to solve liquidity challenges across the Bitcoin ecosystem, has successfully raised $1.3 million in a pre-seed funding round.

Portal Ventures led the investment, with participation from several notable backers, including Bitcoin Frontier Fund, Bitcoin Startup Lab, Big Brain Holdings, Newman Capital, Genblock Capital, Tykhe Block Ventures, and others. Bitflow Labs focuses on building critical infrastructure for Bitcoin DeFi, offering a decentralized exchange platform for trading BTC, stablecoins, Stacks tokens, BRC20s, and more.

The protocol, inspired by popular decentralized exchanges on Ethereum, distinguishes itself by being built on Bitcoin rails, utilizing technologies like PSBTs, Atomic Swaps, AMMs, and Layer-2 solutions.

Bitflow Labs plans to use the funds to enhance its infrastructure, expand the team, improve user experience, and explore new applications within the Bitcoin ecosystem.