Warlock’s $8M Seed Round: A Game-Changer for DeFi

On March 27, 2025, Warlock, a crypto-native market maker and solver, announced a massive $8M seed funding round that’s set to shake up the decentralized finance (DeFi) space. Led by Polychain, with participation from heavyweights like Greenfield Capital, TRGC, REC, Symbolic Capital, and Ambush Capital, this funding round is all about tackling a big problem in DeFi: Maximal Extractable Value (MEV). If you’re new to the term, MEV refers to the profit validators can make by reordering, including, or excluding transactions in a blockchain—often at the expense of users. Warlock’s mission? To disintermediate this landscape and bring more fairness and transparency to the table.

Why MEV Matters in DeFi

Let’s break it down. In the crypto world, protocols generate billions in order flow—basically, the stream of transactions users make, like swapping tokens on a decentralized exchange. But here’s the catch: most of that value doesn’t go to the protocols or users. Instead, it’s captured by a small group of validators and privileged actors who exploit MEV. Warlock points out in their thread that this creates a huge inefficiency. Protocols miss out on revenue, and users often end up paying higher fees or getting worse prices due to these behind-the-scenes manipulations.

Warlock’s vision is to flip this on its head. They argue that if protocols can monetize their order flow effectively, they can pass the savings directly to users—think fee-free front ends for DeFi apps. Plus, protocols could become revenue-positive without relying on token incentives, making them more sustainable in the long run. It’s a bold idea, and with $8M in the bank, Warlock is ready to make it happen.

The Problem with Market Making Today

One of the biggest issues Warlock is tackling is the opacity in market-making agreements. Right now, these deals are often made behind closed doors, leading to what Warlock calls “structural inefficiencies.” In their post, they highlight how this lack of transparency creates information asymmetry—basically, some players have an unfair advantage. On top of that, many market makers charge high fees, which can hurt both the projects and their users. Warlock wants to create a more competitive and transparent market-making landscape, allowing DeFi projects to plan long-term roadmaps without being squeezed by misaligned partners.

Centralization in Ethereum Block Building

Another key focus for Warlock is the centralization of block building on Ethereum. If you’re not familiar, block building is the process of assembling transactions into blocks before they’re added to the blockchain. Warlock notes in their thread that two parties currently produce nearly 90% of all Ethereum blocks—a centralized duopoly. This stems from something called proposer-builder separation (PBS), which was meant to prevent validators from consolidating power but has instead centralized block building. The result? Block builders can manipulate transactions (like unbundling searcher order flow) with little accountability, leaving users and searchers vulnerable.

Warlock’s Solution: ZK-Verified Block Builders

So, how does Warlock plan to fix this? Enter their Sylow elliptic curve cryptography library. Originally developed to contribute secure primitives to the crypto ecosystem, Sylow is now the foundation for Warlock’s big innovation: the first ZK-verified block builder with open proofs. In simple terms, zero-knowledge (ZK) proofs let you verify something without revealing the underlying data. Warlock’s post explains that this tech will allow block builders and order flow processors to guarantee that transactions aren’t tampered with. It also ensures market makers on-chain aren’t engaging in price manipulation—a huge win for fairness in DeFi.

Sylow has already been audited by Zellic and Least Authority, giving it a stamp of security. Warlock’s vision is a future where ZK-attestable infrastructure ensures transparency and trust in block building, and they’re committed to making that a reality.

The Team Behind Warlock

The announcement graphic showcases Warlock’s team, a group of experts in crypto, research, and engineering. Names like Akilesh Potti (Head of Engineering), Laurence Day (World-Class Doctor), and Nathan Worsley (Research) stand out, alongside angels like Anish Agnihotri, Srikanth Kannan, and Mert Mumtaz. With such a strong lineup, it’s no surprise that investors are betting big on Warlock’s vision. They also gave a shoutout to other angels like 0xSnarks, Arshan Khanifar, and Dean Eigenmann in their final post.

What’s Next for Warlock?

Warlock’s $8M seed round is just the beginning. They’re already hiring for roles like MEV Engineer, as seen in a job posting, where they’re looking for talent to dive deep into MEV, DeFi, and cryptoeconomics. Their website, warlock.xyz, offers more details on their vision and projects. As they put it in their closing post, they’re excited to see the community “on chain” as they roll out their solutions.

With their focus on transparency, ZK tech, and protocol sustainability, Warlock is poised to make a big impact on DeFi. Whether you’re a crypto newbie or a seasoned trader, this is a project worth keeping an eye on.