The trades in the market chain are mysterious and important, and also lucrative. The problem, according to the pseudonym of Trader Grug, is that cryptographic protocols with valuable order flow are leaving money on the table.
The Grug Warlock Labs company has just collected $ 8 million in risk financing for what he believes is the solution: a patented commercial company that uses data in the chain to demonstrate that it is processing the order flow in a responsible manner.
The two -year company will enter the complex blockchain pipes that facilitate trade in Ethereum. Here, an army of smart operators offers bribes to protocols in exchange for the opportunity to process the flow of their order, which can squeeze for tens of millions of dollars a year.
But there is no guarantee that these players are not giving protocols a raw treatment, says Grug. The world of removable maximum value (MEV) creates innumerable opportunities to manipulate trades that are not yet putting themselves harmful to the protocol and its merchants.
“We are building orders flow tools and a builder with some zero knowledge guarantees where we can prove essentially after the fact that none of the orders that are subjected to us, either through users or search engines, has been manipulated,” Grug said.
Warlock Labs will begin with an approach to the activity in the chain, but Grug says that he sees opportunities to climb the business to the market also for CEXES. He pointed out the recent controversy within Binance on a market manufacturer that obtained illicit profits from movement tokens, at the expense of merchants.
“We are going to live in the future where the flow of orders is Alfa, and show that he did not abuse him is as valuable as really receiving it,” Grg said. “If you can demonstrate that you will never manipulate with the flow of orders, it is increasingly likely that more and more people will present your order flow.”
He called Warlock Labs a “risk scale business” whose main competitor was the winter hunger, the market giant. The risk companies are paying attention: Polychain Capital led the round with the participation of Greenfield Capital, Reciprocal Ventures, Symbolic Capital, Ambosch Capital and TRGC.
