In a significant move for the decentralized finance (DeFi) space, Velar, a Bitcoin-based DeFi platform, has successfully raised $3.5 million in seed funding from a consortium of Web3 investors. Notable backers include Bitcoin Startup Lab, CMS Holdings, Black Edge Capital, and Maple Block. The investment is earmarked for the development of Velar’s flagship project, Velar Artha, a perpetual decentralized exchange (perp DEX) set to launch in Q2 of this year.
Unlocking Bitcoin’s Untapped Liquidity
Velar Artha aims to tap into the vast, untapped liquidity within the Bitcoin ecosystem, estimated at a staggering $800 billion. By building on the Stacks technology, the platform aims to replicate the success of DeFi on the Ethereum network, where over $100 billion in liquidity has been attracted in recent years.
Redefining DeFi with Bitcoin at the Core
Mithil Thakore, Co-Founder and CEO of Velar, expresses excitement about Velar’s mission to make Proof-of-Work and Bitcoin the foundation of DeFi. Velar plans to redefine possibilities by unlocking $800 billion worth of dormant liquidity for use in DeFi applications. Thakore invites the world to join this groundbreaking journey.
Velar’s Product Suite and Institutional Solutions
Velar’s product suite includes an automated market maker (AMM), a project launchpad, and the perp DEX. This infrastructure enables institutions to leverage their idle Bitcoin holdings as collateral in a non-custodial manner. The platform’s testnet AMM launch last May garnered significant engagement, with over 165,000 testnet wallets created.
Despite initially launching on Stacks, Velar maintains a layer-2 agnostic stance, planning to integrate with other leading Bitcoin Layer 2 solutions. As the project gears up for the mainnet launch, known as Dharma, it seeks to contribute to the logical progression of DeFi for Bitcoin.
Investors in the Bitcoin L2 Space Show Confidence
The funding round witnessed participation from key figures in the Bitcoin Layer 2 space. Cem Özer, Co-Founder and CEO of Sovereign Labs, and Alexei Zamyatin, Co-Founder of Build on Bitcoin, contributed as angel investors. Their involvement underscores confidence in Velar’s vision and potential impact.
Conclusion
Velar‘s successful seed funding round not only underscores investor confidence but also marks a significant step towards integrating Bitcoin into the expanding DeFi landscape. As Velar Artha prepares for its Q2 launch, it holds the promise of unlocking substantial value within the Bitcoin ecosystem.
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FAQs
Q1.What is Velar Artha, and how does it leverage Bitcoin’s liquidity?
Velar Artha is Velar’s flagship project, a perpetual decentralized exchange (perp DEX), aiming to tap into Bitcoin’s untapped liquidity of $800 billion using Stacks technology.
Q2.What does Velar’s product suite offer, and how can institutions benefit?
Velar’s product suite includes an AMM, a project launchpad, and the perp DEX, allowing institutions to leverage idle Bitcoin holdings as collateral in a non-custodial manner.
