Velar Raises $3.5M to Create PerpDEX on Bitcoin
A funding round has been secured by Velar, raising $3.5M in seed funding to develop a PerpDEX on Bitcoin. The goal is to bring perpetual swaps to Bitcoin infrastructure, and blockchain venture capitalists such as Bitcoin Startup Lab, CMS Holdings, and Black Edge Capital are participating in the funding round. With the rise of decentralized finance on Bitcoin, there is a race to fund startups that can secure first mover advantage in their respective verticals.
Velar’s PerpDEX on Bitcoin
Velar aims to create the world’s first perpetual decentralized exchange (PerpDEX) on Bitcoin. This will enable futures trading of assets like BTC and ETH. While Bitcoin was not initially built for DeFi, developers have found ways to work around it, resulting in the growth of DeFi primitives on Bitcoin. Velar is already familiar with Stacks, having developed Dharma on the Bitcoin L2. The launch of the PerpDEX, called Velar Artha, will further strengthen the DeFi ecosystem on Bitcoin.
Advantages of DeFi on Bitcoin
Recreating decentralized finance on Bitcoin infrastructure has several advantages, including utilizing the billions of dollars of liquidity currently sitting idle. With DeFi protocols on Bitcoin, BTC holders can now earn a return on their holdings. Muneeb Ali, co-creator of Stacks, believes that introducing perps for Bitcoin and other assets will unlock the untapped value on Bitcoin. Velar’s liquidity protocol will serve as a gateway to the usability being unlocked by sBTC on Bitcoin L2.
Velar’s Full Range of Bitcoin-based Products
Velar has a range of Bitcoin-based products in the pipeline, including an Automated Market Maker (AMM), project launchpad, and PerpDEX. The AMM is close to completion, with a testnet attracting over 160,000 users. The launch of Velar Artha will further enhance the DeFi primitives available on Bitcoin and strengthen Stacks’ position as a leading Bitcoin L2 solution. The upcoming Nakamoto upgrade of Stacks will optimize the L2 for DeFi, ensuring a seamless launch for Velar Artha.
Hot Take: Bitcoin-based DeFi Poised for Growth
Bitcoin-based DeFi is rapidly evolving into a complete ecosystem, with projects like Velar leading the way. By bringing perpetual swaps to Bitcoin infrastructure, Velar is expanding the possibilities of DeFi on the dominant cryptocurrency. With the billions of dollars in idle liquidity on Bitcoin, the introduction of DeFi protocols provides opportunities for traders to earn a return on their holdings. Velar’s innovative approach and the support from blockchain VCs indicate strong momentum towards the growth of DeFi on Bitcoin.
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