Burnt Finance, a NYC-based fully decentralized auction protocol built on Solana to enable auctions, raised $3m in funding.
Backers included Injective Protocol, Multicoin, DeFiance, Alameda, Mechanism, Vessel Ventures, Hashkey, Spartan, Do Kwon (CEO of Terra), Sandeep (COO of Polygon), and others.
Earlier this year an anonymous group known only as “Burnt Banksy” was put into the international spotlight when they burnt and created a non-fungible token (NFT) of the original Banksy piece. Then the group held an auction on the OpenSea platform where the art piece was sold for nearly $400,000. While holding the auction, the team faced a number of challenges. The rising congestion of the Ethereum network, which led to high gas fees and made creating NFTs and placing a bid extremely expensive. All major auction platforms suffer from these problems or end up being centralized in their nature. As a result, The Burnt Finance team decided to build a decentralized solution for conducting auctions for a diverse array of assets such as NFTs and synthetics.
Burnt Protocol is built on Solana, a blockchain known for its high speed, performance, and low transaction costs. The platform leverages Solana Wormhole, the first bidirectional bridge launched in 2020 that connects ETH and ERC20 tokens to SPL Tokens and allows Burnt Protocol users to move tokenized assets seamlessly across blockchains to benefit from Solana’s high speed and low cost. The Solana Foundation also supports the project and funded the team with a grant. The platform is in the beta phase now and is expected to launch in Q3 2021.