When we started Radius, we had a simple yet ambitious goal: make rollups sustainable so they can keep scaling Ethereum.

Today, we’re excited to announce we’ve raised $7M in seed funding, led by Pantera Capital, to bring this vision to life.

This funding will help us build the economic infrastructure rollups need for a profitable future—one rooted in stability, fairness, and shared success.

Ethereum has made incredible progress in recent years. Thanks to better compute and more efficient proving systems, rollups are now faster and cheaper than ever.

But one big challenge remains: finding a sustainable revenue model.

Right now, rollups depend on transaction fees for revenue. Unfortunately, a significant portion of that revenue is consumed by high data costs on Ethereum. Raising fees isn’t the answer—it would only drive users away. Without a new approach to revenue, rollups serious challenges to grow and remain competitive.

At Radius, we’ve discovered a better path forward: MEV.

MEV (Maximal Extractable Value) is an additional economic value that can be extracted from block production. While some types of MEV—like transaction reordering—can be harmful, other forms of good MEV—like backrunning arbitrage—actually improve market efficiency and help ecosystems work better.

Yet, this untapped goldmine remains out of reach for most rollups today.

That’s where Radius comes in. We help rollups unlock good MEV and turn it into a sustainable revenue stream. This new model enables rollups to tackle high L1 costs, overcome limited fee revenues, and unlock unprecedented growth opportunities.

Lighthouse is a decentralized network that connects rollups with searchers to capture MEV opportunities. It turns MEV into an independent revenue source.

How it works: Searchers discover valuable MEV opportunities within rollups and submit their bundles to Lighthouse. Lighthouse helps searchers bid for inclusion, while rollups earn fees from executing winning bundles—creating revenue beyond user transaction fees.

While MEV unlocks new revenue, traditional extraction methods have often come at a cost: exposing users to risks like censorship and transaction reordering. These issues damage trust and undermine the ecosystems rollups aim to grow.

At Radius, we believe rollups shouldn't have to choose between generating revenue and protecting users. That’s why we have Secure Block Building (SBB). Built on cryptographic foundations, SBB ensures that rollups can earn MEV revenue without exposing users to harmful practices.

Together, Lighthouse and SBB form an economic powerhouse—protecting users while maximizing revenue, paving the way for ecosystem growth.

Lighthouse will expand to unlock even greater opportunities for rollups by connecting them to Ethereum L1, centralized exchanges (CEXs), and other rollups. These connections allow searchers to access broader MEV landscape, such as cross-rollup arbitrage, CEX-DEX arbitrage, atomic arbitrage, and liquidations, and Ethereum L1-rollup arbitrage (based sequencing).

Every new connection creates more revenue for rollups. This will create a powerful cycle of growth: more revenue, greater resources to attract users, increased activity, and greater value creation. Ultimately, this strengthens Ethereum as a whole.

We’re grateful to work with some incredible rollup teams, including: Swell, Fuse, PlayFi, Ternoa, and Vessel. We’re also working alongside infrastructure leaders like Symbiotic, Avail, Starkware, Eigenlayer, and Nuffle to build the future of Ethereum.

But what excites us even more is where we're heading next.

This marks an exciting new chapter for Radius. Our funding will drive the next phase of our product development, ambitious research efforts, and team expansions.

In 2025, we'll launch Lighthouse to help rollups capture MEV revenue, and by 2026, we will expand across Ethereum to maximize revenue opportunities.

Rollups are essential to Ethereum’s future, and we’re here to make sure they succeed. Through Lighthouse, we’re redefining how rollups generate and share value—making Ethereum a more rewarding place for everyone.

The best way to keep up with our journey is on Twitter (@radius_xyz).

The future of rollup economics starts here. For rollups, visit theradius.xyz to learn how your rollup can unlock new revenue. ✨

There is so much more to come — stay tuned for what’s next!