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Cumberland Labs, an incubator for Chicago-based cryptocurrency trading company Cumberland, has launched a beta version of a new API tool that can make the arduous task of connecting to blockchain and decentralized finance protocols easier.
Cumberland Labs told Cointelegraph that Cumberland, the trading arm of DRW Holdings LCC, used to spend significant time connecting to various protocols manually and one at a time.
The firm was unable to find a tool to make these tasks easier and ended up building its own API service, expand.network, using its own developers and engineers from its incubator. The tool has been under testing since November and is available to the general public in beta.
API stands for Application Programming Interface and is used when one type of programming needs to interact with another.
“We were looking into DeFi trading and were looking for a tool similar to the ccxt Library used for centralized exchanges that could connect to any DeFi protocol or blockchain. To our surprise, no such tool existed,” said Tama Churchhouse, COO of Cumberland Labs. Cointelegraph.
The recently released solution aims to enable both read and write connectivity to major public DeFi blockchains and protocols, helping developers interact with multiple protocol APIs and software development kits (SDKs).
Startup Web3 aims to solve an outdated cryptocurrency problem: the inefficiency of interconnection. However, it is far from solving the same problems as internetworking solutions. According to its CEO Demetrios Skalkotos, while both “may appear similar at first glance,” they serve different purposes.
Related: Connecting DeFi: How Multi-Chain Token Systems Can Improve Liquidity
“Internet solutions primarily facilitate the transfer of messages and tokens between different chains. In contrast, expand.network provides connectivity to chains and protocols, offering a more comprehensive and versatile solution for navigating the DeFi landscape,” he explained.
The low-code tool will support Ethereum Virtual Machine (EVM) compatible networks, including Ethereum, Binance Smart Chain, Avalanche, Polygon, Cronos, Arbitrum, and Optimism, as well as non-EVM compatible networks, such as Solana, Tron, NEAR and Algorand. Upcoming support will be available for Aptos, Sui, Lido, LayerZero and StarkNet.
The platform was conceived and built by Cumberland Labs, who provided funding, resources and advice. If market conditions permit, the startup could apply for funding later this year.
“When it comes to fundraising, our strategy is to target crypto and Series A technology infrastructure investors, as well as potential strategic investors,” Skalkotos said.
As the cryptocurrency space develops, more and more capital is pouring into developer-centric and interoperable solutions. In April, Internet messaging protocol developer LayerZero Labs raised $120 million to expand its presence in the Asia-Pacific region. It previously raised $135 million in March 2022.