Velar’s eventual product suite will include an Automated Market Maker (AMM), project launchpad, and PerpDEX.
Velar, a Bitcoin-focused DeFi platform has secured a substantial $3.5 million seed fund to launch the world’s first Perpetual Decentralized Exchange (PerpDEX) on Bitcoin (BTC). The initiative aims to tap into the substantial $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.
Velar’s Seed Fund Participants
According to a recent press release, Velar’s funding round witnessed participation from key ventures such as Bitcoin Startup Lab, CMS Holdings, Black Edge Capital, GBV, Cypher Capital, Trust Machines SPV, Transform Capital, Maple Block, and Samara Asset Group. 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 as angel investors.
Mithil Thakore, Co-Founder and CEO of Velar expressed enthusiasm about the funding round, stating:
“Velar’s successful funding round is a validation of our mission to make Proof-of-Work and Bitcoin the base layer of DeFi. Velar is set to redefine what’s possible, facilitating $800B worth of dormant liquidity to be used in DeFi; and we’re excited to invite the world to be a part of this groundbreaking journey.”
Additionally, Muneeb Ali, Co-Creator of Stacks, highlighted the importance of DeFi for Bitcoin as he believes that “introducing perps for Bitcoin and other assets that can be swapped in a decentralized way, and earn rewards will help unlock the $500B in untapped value on Bitcoin.”
Notably, Velar’s eventual product suite will include an Automated Market Maker (AMM), project launchpad, and PerpDEX. The PerpDEX component will enable institutions to utilize their dormant Bitcoin holdings as collateral in a non-custodial manner, providing a unique avenue for institutional participation in decentralized finance.
Currently gearing up for the mainnet launch of Dharma, the first Uniswap v2-inspired AMM built on popular Bitcoin Layer Stacks, Velar intends to utilize the newly acquired capital to expedite the development of its PerpDEX named Velar Artha.
The platform will leverage Stacks to enable liquidity for DeFi Decentralized Applications (DApps) on Bitcoin, with Velar Artha scheduled for launch in the second quarter of 2024.
Velar Aim to Challenge Ethereum’s Dominance
While Ethereum remains the dominant DeFi blockchain, commanding 57.3% of the Total Value Locked (TVL), platforms like Stacks have contributed to the emergence of decentralized financial ecosystems on Bitcoin. Velar aims to gradually challenge Ethereum’s status as the premium Layer 1 (L1) for DeFi, paving the way for financial dApps to thrive on the Bitcoin network.
While initially launching on Stacks, Velar is designed as a Layer 2 (L2)-agnostic protocol, indicating its flexibility to integrate with other leading Bitcoin Layer 2 solutions. The platform was co-founded by Mithil Thakore, Jakob, Tejinder Singh Mor, and Aravind Sathyanandham, all fintech and blockchain veterans with extensive experience in the Web3 space. Their collective expertise includes roles in crypto derivatives trading desks, institutional sales, and leadership positions at prominent blockchain organizations.
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