Velar, a Bitcoin-focused decentralized finance (DeFi) platform, has successfully secured a substantial $3.5 million seed fund. The funding will be utilized to launch the world’s first Perpetual Decentralized Exchange (PerpDEX) on the Bitcoin (BTC) network. With this initiative, Velar aims to tap into the significant $800 billion dormant liquidity within Bitcoin’s DeFi ecosystem, offering BTC holders similar value propositions and yields that have proven successful on the Ethereum network.
Tap into dormant liquidity in Bitcoin’s DeFi ecosystem
The main objective of Velar’s PerpDEX is to unlock the vast dormant liquidity in Bitcoin’s DeFi ecosystem. By bringing the successful value propositions and yields of the Ethereum network to BTC holders, Velar seeks to provide an avenue for Bitcoin holders to actively engage in the DeFi space. This is an innovative approach to utilize the substantial untapped value within the BTC network, which currently stands at $500 billion.
Participants in Velar’s funding round
Velar’s funding round witnessed the participation of key ventures in the crypto industry, including Bitcoin Startup Lab, CMS Holdings, Black Edge Capital, GBV, Cypher Capital, Trust Machines SPV, Transform Capital, Maple Block, and Samara Asset Group. Additionally, angel investors Cem Özer, Co-Founder and CEO of Sovereign Labs, and Alexei Zamyatin, Co-Founder of Build on Bitcoin (BoB), have also joined the funding round.
The importance of DeFi for Bitcoin has been highlighted by Muneeb Ali
Muneeb Ali, Co-Creator of Stacks, emphasized the significance of DeFi for Bitcoin. According to Ali, introducing perpetual contracts (perps) for Bitcoin and other assets in a decentralized manner presents a game-changing opportunity. By enabling decentralized swapping and earning rewards on Bitcoin, the aim is to unlock the estimated $500 billion in untapped value on the Bitcoin network.
Velar’s Product Suite
Velar’s product suite will encompass an Automated Market Maker (AMM), a project launchpad, and the PerpDEX itself. By offering these features, Velar aims to facilitate the utilization of the dormant liquidity worth $800 billion in the Bitcoin DeFi ecosystem, providing BTC holders with opportunities to engage in decentralized finance.
PerpDEX Enabling Institutional Participation in DeFi
One unique aspect of Velar’s PerpDEX is its ability to allow institutions to utilize their dormant Bitcoin holdings as collateral in a non-custodial manner. This opens up a new avenue for institutional participation in DeFi, as it provides a secure and decentralized platform for them to leverage their Bitcoin holdings to access the benefits of DeFi.
Utilization of capital for the development of PerpDEX
With the newly acquired funding, Velar plans to expedite the development of its PerpDEX named Velar Artha. This platform will leverage Stacks, a layer 1 blockchain, to facilitate liquidity for decentralized finance (DeFi) decentralized applications (DApps) on the Bitcoin network. The utilization of Stacks will provide an efficient and secure environment for DeFi transactions on Bitcoin.
Velar Challenges Ethereum’s Status as the Premium Layer 1 for DeFi
Velar’s ultimate goal is to challenge Ethereum’s current dominance as the premium Layer 1 (L1) blockchain for DeFi. By offering similar or even better value propositions on the Bitcoin network, Velar aims to pave the way for financial dApps to thrive on the Bitcoin network. This will provide users with more options and contribute to the overall growth and decentralization of the DeFi space.
Co-founders of Velar and Their Expertise in Fintech and Blockchain
Velar was co-founded by Mithil Thakore, Jakob, Tejinder Singh Mor, and Aravind Sathyanandham. Each co-founder brings extensive experience in the fintech and blockchain space, making them well-equipped to drive Velar’s vision forward. Their combined expertise will ensure the successful development and implementation of the PerpDEX and other components of Velar’s product suite.
Velar’s successful $3.5 million seed fund provides the platform with the necessary resources to launch PerpDEX on the Bitcoin network. By tapping into the significant dormant liquidity within Bitcoin’s DeFi ecosystem, Velar aims to unlock untapped value and provide BTC holders with opportunities to participate in decentralized finance. With its innovative approach and experienced team, Velar has the potential to challenge Ethereum’s status as the leading Layer 1 blockchain for DeFi, paving the way for the growth of financial DApps on the Bitcoin network.