Velar is set to release the world’s first PerpDEX on Bitcoin, backed by a $3.5M seed fund.

Velar, a developing Stacks-based PerpDEX aiming to create a new liquidity hub for Bitcoin, recently secured a $3.5 million seed funding.

Velar Secures $3.5 Million Seed Fund to Launch PerpDEX on Bitcoin

💰 Velar, a Bitcoin-focused DeFi platform, has recently raised a substantial $3.5 million seed fund to launch the world’s first Perpetual Decentralized Exchange (PerpDEX) on Bitcoin (BTC). This initiative aims to tap into the $800 billion dormant liquidity within Bitcoin’s DeFi ecosystem, offering BTC holders exciting value propositions and high yields that have proven successful on the Ethereum network. 💪📈

Velar’s Seed Fund Participants

The funding round for Velar saw participation from key ventures in the cryptocurrency space, including Bitcoin Startup Lab, CMS Holdings, Black Edge Capital, GBV, Cypher Capital, Trust Machines SPV, Transform Capital, Maple Block, and Samara Asset Group. Notably, 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 his excitement about the funding round, emphasizing that it validates their mission to make Proof-of-Work and Bitcoin the base layer of DeFi. In Thakore’s words: 🔥

“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.”

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Muneeb Ali, Co-Creator of Stacks, also highlighted the significance of DeFi for Bitcoin, noting 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.” 🚀🔓

Velar’s Impressive Product Suite

Velar has an exciting product suite in the works, which will include an Automated Market Maker (AMM), a 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 highly anticipated mainnet launch of Dharma, the first Uniswap v2-inspired AMM built on the popular Bitcoin Layer Stacks, Velar aims to leverage its newly acquired capital to expedite the development of its PerpDEX named Velar Artha. This platform will utilize Stacks to enable liquidity for DeFi Decentralized Applications (DApps) on Bitcoin, with Velar Artha scheduled for launch in the second quarter of 2024. 📈📅

Challenging Ethereum’s Dominance

While Ethereum remains the dominant blockchain for DeFi, with 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, showcasing 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. 💼🌟

Q&A

Q: What is PerpDEX? A: PerpDEX is the world’s first Perpetual Decentralized Exchange built on Bitcoin. It aims to tap into the substantial liquidity within Bitcoin’s DeFi ecosystem and provide BTC holders with high yields and value propositions similar to those found on the Ethereum network.

Q: What is the significance of Velar’s seed fund? A: Velar’s $3.5 million seed fund enables the platform to expedite the development of its product suite, including the PerpDEX. This funding validates Velar’s mission to make Bitcoin the base layer of DeFi and tap into the $800 billion dormant liquidity within the Bitcoin ecosystem.

Q: How does Velar challenge Ethereum’s dominance in DeFi? A: While Ethereum currently holds a significant market share in DeFi, platforms like Stacks have enabled the emergence of decentralized financial ecosystems on Bitcoin. Velar aims to gradually challenge Ethereum’s status as the premium Layer 1 for DeFi, allowing financial dApps to thrive on the Bitcoin network.

Q: When will Velar Artha be launched? A: Velar Artha, the PerpDEX component of Velar’s product suite, is scheduled for launch in the second quarter of 2024. This launch will enable institutions to utilize their dormant Bitcoin as collateral in a non-custodial manner, promoting institutional participation in decentralized finance.

Q: Who are the co-founders of Velar? A: Velar was co-founded by Mithil Thakore, Jakob, Tejinder Singh Mor, and Aravind Sathyanandham. These individuals are fintech and blockchain veterans with extensive experience in the Web3 space, including roles in crypto derivatives trading desks, institutional sales, and leadership positions at prominent blockchain organizations.

Future Outlook

Velar’s ambitious plans to launch PerpDEX on Bitcoin, leveraging the substantial dormant liquidity within the Bitcoin ecosystem, shows great potential for growth and innovation in the DeFi space. By challenging Ethereum’s dominance and providing enticing value propositions for BTC holders, Velar aims to open new doors for financial opportunities on the Bitcoin network. As the platform continues to develop and gain momentum, it will be interesting to see how it evolves and plays a significant role in shaping the future of decentralized finance. 🚀🌐

References

1. DeFi and Identity: The Focus of US Policymakers
2. Bitcoin Price at $43k: Smart Money Bets Big on Bitcoin Ahead of Potential BTC ETF Approval
3. CoinList to Begin Meson Community Sale in February
4. Vitalik Buterin Blames Rising Transaction Fees on Web3’s Drift from Decentralization

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