An organization that provides a non-custody credit platform for Bitcoin BUY NOW It has partnered with some of the biggest names in the blockchain industry to collect donations and develop a native decentralized financing solution (DeFi) for Bitcoin.
Atomic Loans raised $ 2.45 million in a launch round led by Initialized Capital. The financing round included a provider of blockchain solutions Ethereum BUY NOW, ConsenSys and Morgan Creek Digital, the investment company for digital assets, among others.
DeFi for Bitcoin
Atomic Loans is essentially a platform that enables a two-sided market for Bitcoin-based loans. Users can lock their BTC natively to an unguarded deposit in the Bitcoin chain and borrow stable coins like DAI or USDC. It works similarly to DeFi credit platforms based on Ethereum, but with Bitcoin.
The team of three founded the company a year ago when Ethereum-based DeFi started. When the team realized that Ethereum had the benefit of scripting languages and smart contracts, they wanted to bring something similar to Bitcoin, and this round of seeds is where it came from.
The announcement summarized the current situation with a snippet from Anthony Pompliano’s “Off the Chain” newsletter, which stated that Bitcoin was being tested as currency while the financial services infrastructure was not being tested locally. In contrast, Ethereum is not tested as a currency, but has a proven DeFi ecosystem.
Min Teo, partner of ConsenSys Labs, said that Bitcoin will be a key part of DeFi activities, adding:
The vision of creating a parallel financial system without permission and open to everyone goes beyond chains and communities …
Pompliano himself applauded the company and added:
Atomic Loans is building the decentralized financial infrastructure that Bitcoin is using as intended.
I am thrilled to be back @Atomic_Loans how they bring DeFi to Bitcoin.
Look at her! Tthttps: //t.co/qjGbNbG0j0
– Pomp ? (@APompliano) April 14, 2020
Today’s state of DeFi
The current state of the decentralized financial industry is heavily geared towards Ethereum, but a Bitcoin DeFi ecosystem would be more complementary than competitive.
According to Defipluse.com, 2.7 million ethers are currently blocked in DeFi protocols as security for decentralized loans and credits. Based on the total blocked in USD, the value is USD 713 million.
The value of the dollar has fallen in parallel with the price of Ethereum, which fell off the digital cliff last month during the market crash caused by COVID-19. The record high for the DeFi dollar lock was $ 1.24 trillion in mid-February, a value that has increased 330% since the same period last year. However, since the peak, DeFi’s markets have shrunk 42 percent when the guarantee was settled.
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