In a move to bolster its capabilities in web3 automation, Ava Protocol, an actively validated service (AVS) under EigenLayer, has acquired Openstory, a blockchain data startup. The financial details of the transaction have not been disclosed.
The Deal and Its Significance
The acquisition was funded through a combination of cash and Ava Protocol’s soon-to-be-launched AP tokens, according to Chris Li, the Founder and CEO of Ava Protocol. Li indicated that discussions around the acquisition began in the third quarter of the previous year and were finalized earlier this year.
Openstory’s founder, Vinh Nguyen, has joined Ava Protocol as a systems architect as part of the agreement. Although the specifics of the deal remain confidential, it is suggested to be a relatively small transaction. Openstory had previously raised $1 million in an angel funding round.
Ava Protocol’s Background and Objectives
Ava Protocol, originally established as Oak Network in 2021, focuses on creating autonomous transaction infrastructure on the Polkadot blockchain. The rebranding to Ava Protocol was undertaken earlier this month to align with the project’s expanded vision of supporting multiple blockchains.
Currently, Ava Protocol operates on the Ethereum blockchain as an EigenLayer AVS and on Polkadot as a parachain. EigenLayer AVSs are third-party protocols that leverage security from EigenLayer, an Ethereum restaking protocol. Ava Protocol is deployed on Ethereum’s Holesky testnet, where it handles over 1,000 automated transactions daily across more than 10,000 unique wallets. Plans are in place to launch on the Ethereum mainnet as an EigenLayer AVS in approximately three weeks, followed by the introduction of Ava Protocol’s native AP token within two to three months.
Enhancing Capabilities with Openstory
Openstory, which was also founded in 2021, specializes in providing on-chain data. Li noted that the acquisition of Openstory will enable Ava Protocol to monitor and analyze activities on Ethereum Virtual Machine (EVM) chains more effectively through real-time data streaming and analytics tools. This enhancement is expected to improve the responsiveness and efficiency of Ava Protocol’s automation solutions.
As an intent-based EigenLayer AVS, Ava Protocol facilitates developers in scheduling and automating functions across various blockchains based on indicators such as time, price changes, and smart contract updates. The protocol’s applications include scheduling future and recurring payments, trustless auto-trading and portfolio rebalancing, executing limit orders on decentralized exchanges, and initiating token airdrops.
Recent Fundraising Efforts
Earlier this month, Ava Protocol announced it had secured a total of $10 million in capital from investors including Electric Capital, GSR, and Greylock Partners. This funding comprises a $5.5 million seed round raised in 2022 and a $4.5 million seed+ round raised in 2023, the latter being announced post-rebranding.
In summary, Ava Protocol’s strategic acquisition of Openstory represents a significant step towards enhancing its capabilities in web3 automation. With the integration of Openstory’s real-time data analytics, Ava Protocol is poised to offer more efficient and responsive solutions across multiple blockchains.
