Liquidity protocol Rook has experienced a surge in activity, with its token (ROOK) rising 23% on speculation that Three Arrows Capital founders Zhu Su and Kyle Davies have completed a raise for their bankruptcy-claims exchange.

The surge follows a tweet from decentralized finance (DeFi) researcher Ignas, who indicated the two may have completed a $25 million fundraise. Three Arrows Capital was a failed hedge fund that invested in the seed round for KeeperDAO, now rebranded to Rook, in 2020.

Rook is a maximum extractable value (MEV) marketplace on Ethereum. It aims to redistribute value that is often swept up by miners and predatory trading algorithms.

The protocol has around $5 million in total value locked (TVL), a far cry from its 2021 high of $606 million, data from DefiLlama shows. The token is currently trading at $16.01 although daily volume remains relatively low at $171,000, according to Cryptowatch data.

After investing in KeeperDAO's seed round, Su said the protocol will keep liquidation on Ethereum "efficient" while ensuring that participants "earn their keep."

Three Arrows Capital filed for bankruptcy protection last year after its long-only trading strategies backfired in the wake of a market crash that culminated in the collapse of the $60 billion Terra ecosystem.