This research report aims to deeply explore the relevant issues of the project and provide valuable information to investors. This article does not constitute any investment advice, please invest rationally.
Worth noting:
Reservoir has completed $14 million in Series A financing.
Project Introduction
Reservoir is a token and NFT trading infrastructure with a product suite that includes Relay, a bridge and trading platform for Solana, Bitcoin, Tron, Ethereum Virtual Machine (EVM) chains, and rollup networks; Reservoir Swap, a decentralized exchange and token API; and Reservoir NFT, an NFT marketplace and API.
Project Investment
2025-02-05 Completed US$14 million Series A financing; investment institutions include Union Square Ventures*, Coinbase Ventures, Archetype, 1kx, Variant Fund, Delphi Digital, Nascent, Framework Ventures, The LAO, Spaceship DAO, and Sapphire Ventures.
2022-12-01 Completed a $10 million seed round of financing, invested by Archetype;
2021-12-01 Completed $2 million in Pre-seed round financing; invested by Variant Fund;
Project Advantages
Instant Bridging: The API allows users to pay for transactions on any chain using currency from any other chain. Additionally, the API aggregates cross-chain swap routing, meaning users can pay for swap and cross-chain transaction fees using the best available liquidity directly through the API.
Fast: Since relayers own their own capital, they can take on confirmation risk and optimistically finalize without waiting for global consensus
Low cost: Because rebalancing is done infrequently and in batches, the security cost of using a bridge is spread over many users
Deployment efficiency: Since all custody and settlement takes place on a dedicated chain, supporting new origin/destination chains is much simpler.
Funding efficiency: Since the settlement chain can be a low-cost L2, orders can be settled instantly, preventing relayers from having their funds locked up for hours
Project Evaluation
The key theme of the relay protocol is the pursuit of maximum efficiency. This is because exciting new use cases are only possible when costs, delays, and frictions are minimized. Even if block space becomes abundant, it will still be important to design a system that is as efficient as possible, because it can pass on cost savings to users, relayers, and applications.
