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Velar Raises $3.5M to Develop Bitcoin DeFi Tools

Jonathan Wong

Jonathan Wong

02 February 2024

After raising $3.5 million, cryptocurrency startup Velar plans to exchange Bitcoin DeFi forever. CEO Mithil Thakore stated, 'Bitcoin DeFi is just too nascent right now.' However, that is starting to alter. A crypto trading startup called Velar announced on Thursday that it had raised $3.5 million in venture capital to develop a set of tools for decentralized finance (DeFi), which is a developing area of Bitcoin.

CEO Mithil Thakore of Velar told CoinDesk that the company intends to open the first perpetual swaps exchange using the Bitcoin network, which is the most widely used and ancient blockchain. Unlike Ethereum, however, Bitcoin cannot support the smart contracts required for DeFi.

With the rise of Bitcoin's Layer-2s and side chains, that has started to change. Through methods like merge mining, these networks capable of smart contracts obtain their fundamental security from Bitcoin, according to Thakore.

Stacks' upcoming Nakamoto Release, an upgrade to its universe of Bitcoin layer that will see the introduction of a synthetic bitcoin asset called sBTC that is pegged to the mother-of-all-cryptos, BTC, is the particular wager that Thakore and Velar are making. According to Thakore, the goal of sBTC is to enable bitcoin owners to access the DeFi value of their assets without having to give up custody.