Home News Matter Labs raises $50M to build EVM-compatible ZK-Rollups

Matter Labs raises $50M to build EVM-compatible ZK-Rollups

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The startup Matter Labs, which is behind Ethereum layer 2 scaling protocol zkSync, has closed a Series B funding round for $50 million. Andreessen Horowitz (a16z) led the round.

Thus, other companies involved in the round included Blockchain.com, Crypto.com, Consensys, Bybit, OKEx, Alchemy, Covalent and others.

The founders and top managers of Aave, ParaSwap, Lido, Futureswap, Gnosis, Rarible; Aragon, Liquidity, Celer, Connext, Perpetual, Euler and Opium also contributed money. As well as former investors Placeholder, Dragonfly and 1kx.

Much higher rate and lower gas fees

The main purpose of zkSync is to transfer ERC-20 tokens. Therefore, ZK-rollup is a hybrid scaling method that combines first- and second-layer networks through smart contracts; as well as zero-knowledge proof technology.

Consequently, the second version of the protocol will support EVM-compatible and composable smart contracts. In addition, more than 150 projects from such areas as DeFi, NFT, DAO, games, exchanges, software development, blockchain analytics, wallets are ready to test the solution in the testnet.

“zkSync [v2] will enable Ethereum transactions at a much higher rate and lower gas fees than mainnet”. Said Dan Boneh, Professor of Computer Science at Stanford. Matter Labs will use the funds received to expand its scientific and engineering teams and finance the growth of its business.

Maintaining the dominant share

Earlier in June 2020, Matter Labs launched a beta version of zkSync in the Ethereum blockchain with a bandwidth of 2000 TPS and an average commission of $0.01.

Later in March 2021, the company closed a Series A funding round led by Union Square Ventures. Coinbase, Aave, Curve Finance, CoinGecko, Placeholder, 1kx and Dragonfly Capital and others also participated in the round. “We decided to limit participation mainly to strategic partners in order to maintain the dominant share of the community in the future zkSync network,” said representatives of the startup.

Recall that previously in August, Ethereum scaling project Polygon acquired Hermez Network, specializing in ZK-Rollups second-level scaling solutions, for $250M.

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