Elastos Bitcoin DeFi Secures $20M Funding for Expansion

Elastos Bitcoin DeFi Secures $20M Funding for Expansion

Key Points:

  • Elastos Bitcoin DeFi raises $20M to scale BeL2.
  • Bitcoin DeFi protocol aims to unlock BTC’s potential for decentralized finance.

Elastos Bitcoin DeFi secures $20M funding to scale BeL2, enabling BTC holders to collateralize Bitcoin and access Ethereum smart contracts for DeFi.

Elastos Bitcoin DeFi Secures $20M for Expansion

Elastos, the provider of decentralized infrastructure behind the BeL2 Bitcoin DeFi protocol, closed a $20 million raise with Rollman Management. The money will go toward continuing to scale its offerings as a layer for decentralized finance on Bitcoin, a process followed by collateralizing BTC held by users and letting them access Ethereum smart contract services such as minting stablecoins and peer-to-peer borrowing.

The $20 million raised will also be utilized to develop the merge-mined ELA token of Elastos, positioned to act as a Bitcoin reserve asset. As more Bitcoin gets stored around the world, Elastos plans to tap into the liquidity and security of Bitcoin to fund DeFi services- something Bitcoin has never had the utility for. It evidences the growing number of initiatives that do try to unlock Bitcoin’s full potential in the DeFi space for both Bitcoin holders and developers alike, according to Elastos.

Read more: DeFi Technologies’ Bitcoin Adoption Announced With New 110 BTC Purchased

Elastos Bitcoin DeFi Protocol: Bridging Bitcoin and Ethereum

Elastos seeks to bridge Bitcoin and Ethereum ecosystems by introducing the BeL2 Bitcoin DeFi protocol, which enables Bitcoin holders to access Ethereum smart contract services through collateralization. Elastos offers a unique solution wherein users can leverage their Bitcoin in decentralized financial applications without having to leave the Bitcoin blockchain. The interoperability of BeL2 with Ethereum has been seen as one of the key steps towards enhancing Bitcoin’s role in decentralized finance.

This has always been the biggest challenge in integrating Bitcoin into DeFi because, in the first place, Bitcoin was never designed to support smart contracts. However, the introduction of BeL2 shows Elastos gradually inching closer toward providing solutions that leverage Bitcoin’s security and liquidity. With Bitcoin still representing large amounts of value, this presents an opportunity for Elastos to increase its utility and more fully integrate it into the growing DeFi ecosystem.

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