The rollup platform Radius raised $7 million in seed financing led by the crypto-focused venture firm Pantera Capital, according to a company release.
Radius is developing a decentralized network called Lighthouse. This tool aims to convert Maximum Extractable Value (MEV), a type of financial gain from manipulating blockchain transaction order, into a revenue source for rollups so that they don't need to rely on transaction fees. Radius plans to use the funding to continue building out its economic infrastructure rollups.
"MEV is an additional economic value that can be extracted from block production. While some types of MEV — like transaction reordering — can be harmful, other forms of good MEV — like backrunning arbitrage — actually improve market efficiency and help ecosystems work better," the firm wrote in the Jan. 23 release. "That’s where Radius comes in. We help rollups unlock good MEV and turn it into a sustainable revenue stream. This new model enables rollups to tackle high L1 costs, overcome limited fee revenues and unlock unprecedented growth opportunities."
Radius is not the only platform aiming to capitalize on MEV. In December 2024, the Solana-based liquid staking protocol Marinade Finance talked about introducing a governance proposal that would fairly redistribute MEV rewards, The Block previously reported.
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