HTTPS for Crypto: Grvt’s ZK Leap Thwarts Mempool Hunters

Grvt, a decentralized exchange (DEX) leveraging zero-knowledge (ZK) technology, has secured $19 million in Series A funding to address privacy and scalability challenges in on-chain finance. The round was co-led by ZKsync, its foundational technology partner, along with Further Ventures (backed by Abu Dhabi’s sovereign wealth fund), EigenCloud (formerly EigenLayer), and 500 Global. This brings Grvt’s total funding to over $25 million, valuing the firm at an estimated $150 million. The capital will accelerate product development, including cross-chain vaults, real-world asset (RWA) integrations, and options markets, while expanding global operations and hiring initiativesGRVT Raises $19M Series A for ZKsync Hybrid DEX^[7].

Grvt’s platform operates on ZKsync’s Validium L2 blockchain, which validates transactions without publishing sensitive data, ensuring privacy while inheriting Ethereum’s security. This architecture mitigates risks like “whale hunting,” where large trades are front-run or exploited via mempool scanning. According to Chainalysis, such tactics drained billions from users through maximum extractable value (MEV) attacks in 2023. Grvt’s ZK proofs mathematically verify transaction validity on Ethereum, enabling off-chain processing with low fees (under $0.05 per transaction) and scalability (up to 2,000 transactions per second) compared to Ethereum’s 15 tpsGRVT Raises $19M Series A for ZKsync Hybrid DEX^[7].

The funding aligns with a broader surge in on-chain finance. Ethereum’s August on-chain volume hit $320 billion, the highest since mid-2021, while DeFi is projected to grow from $32.36 billion in 2025 to $1.5 trillion by 2034. Investors view Grvt as a potential liquidity hub for this expanding market. ZKsync’s CEO Alex Gluchoski likened ZK technology to “HTTPS for crypto,” emphasizing its role in mainstream adoption by adding privacy and trust. Further Ventures’ Managing Partner Faisal Al Hammadi highlighted the firm’s commitment to “borderless financial systems,” citing Grvt’s institutional-grade infrastructureGrvt raises $19m to pioneer privacy-first onchain finance^[3].

Grvt’s strategy combines privacy with yield-driven features to attract both active traders and passive investors. The platform plans to launch a fixed-yield product offering 10% returns and a market-making strategy (GLP) targeting high double-digit APRs. These initiatives aim to create a “flywheel” effect, where user deposits fund sophisticated strategies that sustain trading volume. Regulatory progress includes a Bermuda digital asset license and applications for EU MiCA, Dubai’s Virtual Assets Regulatory Authority (VARA), and Abu Dhabi Global Market (ADGM) licensesGRVT Raises $19M Series A for ZKsync Hybrid DEX^[7].

Challenges remain, including competition from platforms like Hyperliquid, which dominates 70% of decentralized perpetual futures trading. Hyperliquid’s transparency, while beneficial for price discovery, exposes large traders to manipulation—a gap Grvt aims to fill. The DEX’s hybrid model, blending centralized exchange compliance with decentralized custody, positions it as a “CeDeFi” platform. EigenCloud’s EigenDA data availability solution further enhances scalability by resolving privacy-data availability trade-offsGRVT Raises $19M Series A for ZKsync Hybrid DEX^[7].

With Ethereum’s on-chain volume surging and DeFi’s projected growth, Grvt’s ZK-powered infrastructure is poised to address critical barriers to mainstream adoption. The firm’s focus on privacy, security, and institutional partnerships underscores its ambition to unify the fragmented on-chain finance landscape. As ZK technology matures, its role in enabling secure, scalable, and accessible financial systems may redefine the industry’s trajectoryGRVT Raises $19M Series A for ZKsync Hybrid DEX^[7].