Some of the biggest names in the Blockchain-industry are currently collecting funds to provide a native, decentralized financing solution (DeFi) for Bitcoin to build up.
Atomic Loans raised in a Seed round led by the Venture Start-up company, Initialized Capital, 2.45 million dollars. The round of financing, among other things, ConsenSys, a provider of Ethereum-Blockchain solutions, and the investment company Morgan Creek Digital took part.
DeFi for Bitcoin
Atomic Loans is Essentially a platform that allows a two-sided marketplace for Bitcoin-backed loans. User can lock their BTC natively in a non-held Escrow on the Bitcoin Chain, and stable coins like DAI, or USDC for rent.
It works similar to regular Ethereum-based DeFi-Lending platforms – but with Bitcoin.
The three-member Team, the company launched a year ago, as the Ethereum-based DeFi just went to the Start. When the Team realized that Ethereum languages, the advantage of scripting and Smart Contracts brings with it, it wanted to create something Similar for Bitcoin, and this is a start round is his birth hour.
The announcement summarizes the current Situation with a snippet from Anthony Pomplianos “Off the Chain”Newsletter. It means that Bitcoin is successful as a currency, but the financial services infrastructure in a decentralised Form, but untested.
Conversely, Ethereum is untested as a currency, but has a proven DeFi-Ecosystem.
The Partner of ConsenSys Labs, Min Teo explains that Bitcoin will be a core component of the DeFi-activities. He says:
“The Vision of the creation of a parallel financial system, licensing gungslos and open to all, is a Vision that goes beyond Chains and communities…”
Pompliano even applauded the endeavor and added:
“Atomic Loans to build the decentralized financial infrastructure, the Bitcoin so uses, as it was intended.”
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The current Status of DeFi
The current Status of the decentralized financial industry is heavily focused on Ethereum, but a Bitcoin-DeFi-Ecosystem could be more complementary than competitive.
According to Defipluse.com there are currently 2.7 million Ether, which are included in the DeFi-protocols as a security for decentralized lending and borrowing. Relative to the USD specified total value, the number amounts to 713 million dollars.
The value of the dollar fall together with the price of Ethereum, the last month during the COVID-19-induced market crash of the digital cliff fell. The all-time high for the DeFi-Dollar-barrier was in the middle of February at 1.24 billion dollars – a number that has risen since the same date in the previous year by 330 percent.
Since the peak of the DeFi-markets have shrunk by 42 percent since the collateral is liquidated. Many analysts expect, however, that soon a trend reversal.