Router Protocol, a project aimed at connecting multiple blockchains, has raised a $4.1 million funding round.
Router, which raised $485,000 of seed funding last year, now has the backing of Coinbase Ventures, QCP, De-Fi Capital, Polygon, Wintermute, Shima, Woodstock and Bison Ventures.
As the blockchain universe matures, liquidity is at risk of being fragmented across a raft of chains such as Avalanche, Polygon, Solana, Terra and Algorand.
â€œRapid growth of various blockchains means the need of the hour is the ability for these to talk to each other through bridges and other forms of connectivity,â€ said Router CEO Ramani Ramachandran. â€œOur unique selling point is that we can do EVM [Ethereum Virtual Machine] and non-EVM chains, as well as layer 1 and layer 2 networks.â€
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When it comes to liquidity bridges, the â€œbig elephant in the roomâ€ is security, says Ramachandran. Hacks are almost a rite of passage in this space, and any system that sets out to connect networks is only as secure as the weakest link in the protocols on either side.
Routerâ€™s precaution is to connect only major, well-established blockchains, as well as completing a â€œfive or six auditsâ€ on its code.