EigenLayer AVS Ava Protocol acquires blockchain data startup Openstory

Ava Protocol, an EigenLayer actively validated service (AVS) focused on web3 automation, has acquired Openstory, a blockchain data startup, for an undisclosed sum.

The deal was financed via cash and Ava Protocol's yet-to-launch AP tokens, Ava Protocol Founder and CEO Chris Li told The Block. The deal talks began in the third quarter of last year and closed earlier this year, Li said.

As part of the deal, Openstory founder Vinh Nguyen has joined Ava Protocol as a systems architect. While the deal size hasn't been disclosed, it appears to be a small transaction. Li said Openstory had raised $1 million in an angel round.

What is Ava Protocol?

Ava Protocol, formerly known as Oak Network, was founded in 2021 to develop autonomous transaction infrastructure on the Polkadot blockchain. The rebranding to Ava Protocol took place earlier this month to reflect the project's broader vision of supporting multiple blockchains, Li said.

Ava Protocol currently supports the Ethereum blockchain as an EigenLayer AVS and Polkadot as a parachain. EigenLayer AVSs are third-party protocols that derive security from EigenLayer, an Ethereum restaking protocol.

Ava Protocol is currently deployed on Ethereum's Holesky testnet and processes over 1,000 automated transactions daily across more than 10,000 unique wallets, Li said. The protocol is planned to launch on the Ethereum mainnet as an EigenLayer AVS in three weeks, Li added.

Following the mainnet launch, Ava Protocol's native AP token will also launch after 2-3 months, he said.

The Openstory deal

Openstory, also founded in 2021, provides on-chain data. Li said Ava Protocol's acquisition of Openstory will help it monitor and analyze Ethereum Virtual Machine (EVM) chains' activities with real-time data streaming and analytics tools.

"This will help make Ava Protocol's automation solutions more responsive and efficient," he added.

As an intent-based EigenLayer AVS, Ava Protocol enables developers to schedule and automate functions across different blockchains based on signals such as time, price changes and smart contract updates, Li said.

Use cases of the protocol include scheduling future and recurring payments, trustless auto-trading and portfolio rebalancing, executing limit orders on decentralized exchanges and triggering token airdrops, Li added.

Earlier this month, Ava Protocol announced it had raised $10 million in total capital from investors, including Electric Capital, GSR and Greylock Partners. The total funding includes a $5.5 million seed round raised in 2022 and a $4.5 million seed+ round raised in 2023, but announced earlier this month after the rebranding, Li said.