Bitcoin startup Rebar raises $2.9M to build MEV products
Quick Take
- Rebar, a Bitcoin analytics startup, secured $2.9 million in seed funding for its Bitcoin-based MEV products.
- The startup is developing an alternative to the public mempool to help miners organize transactions more efficiently.
- New protocols like Ordinals and Runes have introduced MEV opportunities on Bitcoin despite its lack of native smart contract support.
Rebar, a Bitcoin analytics software startup, announced on Thursday that it raised $2.9M in seed funding to build what is being described as the first dedicated Bitcoin-based MEV product. The round was led by 6th Man Ventures, with participation from ParaFi Capital, Arca, Moonrock Capital, and UTXO Management.
MEV, or maximal extractible value, is the process of ordering transactions to earn higher fees.
“Rebar recognizes that MEV (Maximum Extractable Value) strategies are emerging on Bitcoin, similar to those seen in DeFi on Ethereum,” according to a press release. “The company recognizes both the challenges and opportunities presented by MEV, aiming to develop solutions that balance network efficiency with user protection and equitable value distribution across the Bitcoin ecosystem.”
In particular, the startup is building an alternative to the public mempool that will enable miners to organize transactions better. New protocols like Ordinals and Runes have created opportunities for MEV on Bitcoin that previously didn’t exist because the Bitcoin blockchain does not natively support smart contacts.
“The more complex transactions become, the more opportunities miners have to create MEV by exploiting the inefficiencies caused by added complexity,” Bitcoin company River Financial wrote in an explainer. Examples of MEV include frontrunning, sandwiching, and arbitraging transactions, including where a miner replaces a user’s buy order with their own to lock in a better price.
"We believe Rebar is at the forefront of a crucial development in the Bitcoin ecosystem. Their focus on MEV and its related infrastructure will be vital as Bitcoin continues to evolve and attract more diverse activities on-chain,” Carl Vogel of 6th Man Ventures said.
"Bitcoin is entering a new era of programmability and increased trading activity," said Rebar CEO Alex Luce. "Our mission is to develop infrastructure and products that help the Bitcoin community — its users, miners, and developers — navigate the emerging MEV landscape on Bitcoin, ensuring a more equitable and transparent ecosystem."
In addition to the private mempools already deployed on chains like Ethereum to shield information from front-running MEV bots by avoiding broadcasting it to the entire network, Rebar also plans to build data products and dashboards.
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