Cata Labs stated today that it has raised $4.2 million in initial funding to promote the creation of a cross-chain liquidity layer that would speed up economic activity between blockchains. Spartan Group led the financing, which also included Robot Ventures, Maven11, Alchemy Ventures, HashKey Capital, Circle Ventures, and Superscrypt. Calvin Liu, Aditi Sriram, and David Phelps are among the notable angel investors.
Cata Labs, which was founded by crypto veterans Jim Chang and Alexander Lindgren, is developing Catalyst, an open-source protocol that enables liquidity between modular blockchains. Any new modular chain can use Catalyst to seamlessly connect liquidity and swap with any other chain, including liquidity hubs like Ethereum and Cosmos.
Modular blockchains, a new concept in cryptocurrency, are composed of many modules that can be added as needed. Each module serves a distinct purpose, making the blockchain more adaptive and flexible. Modular blockchains can assist in increasing the scalability and customizability of blockchain networks.
Modular blockchains are easier to implement than regular blockchains, allowing the number of blockchains to explode.
Modular blockchains are easier to implement than regular blockchains, allowing the number of blockchains to explode. As new chains emerge, they remain isolated, impeding cross-chain trading. In fact, a modular chain can’t do anything if it can’t link to another blockchain. Catalyst is changing this by launching with an automatic cross-chain connectivity for modular networks, removing barriers between chains as the global liquidity layer.
Cata Labs will work on the release of the Catalyst whitepaper and testnet over the next few months, bringing the power of permissionless liquidity to the Cosmos ecosystem. Catalyst will then expand to the Ethereum ecosystem, supporting alternate L1 blockchains and L2 rollups.
Cata Labs is a group of researchers and developers who want to empower people by connecting the world’s blockchains. People may easily swap assets and access decentralized applications across any chain with Catalyst, the company’s core offering.
