cryptobriefing.com
Velar, a DeFi liquidity protocol built on Bitcoin, announced today the mainnet launch of Dharma, its new Automated Market Maker (AMM) inspired by Uniswap V2. Dharma is designed to broaden the DeFi functionalities available on Bitcoin, potentially unlocking the network’s trillion-dollar potential.
LIFTOFF! 🚀
Velar's AMM is now live with STX<>aeUSDC & STX<>aBTC trading pairs, unlocking decentralized trading on Bitcoin!
This changes EVERYTHING! Join the revolution as we reshape #DeFi, making trading seamless & accessible!
The future is here with #Velar Dharma! 🟧 pic.twitter.com/KYoh8Y9i8n
— Velar (@VelarBTC) March 19, 2024
The new launch followed last year’s successful tesnet launch, attracting over 100,000 users.
According to Velar’s press release, Dharma is powered by Bitcoin layer 2 protocol Stacks. The initial release of Velar’s V1 Dharma features a decentralized exchange (DEX) that facilitates fully on-chain trading of token pairs. This development is expected to enrich liquidity within the expanding Bitcoin ecosystem and introduce novel DeFi features.
At launch, Dharma will support two token pairs, STX-ABTC and STX-AEUSDC, with plans to add more tokens in the following days. Velar’s Dharma AMM leverages the Bitcoin network’s robust security to offer a dependable and intuitive platform for DeFi activities. Velar expects to redefine DeFi operations on Bitcoin with the latest move and lay the groundwork for a thriving ecosystem of DeFi applications and services.
Mithil Thakore, Velar’s CEO, expressed his enthusiasm for the launch, stating that “it’s a testament to Velar’s commitment to revolutionizing the DeFi landscape.”
“With this innovative platform, we’re not just embracing change; we’re driving it,” Thakore added. “By offering users the opportunity to leverage the power of their assets in a secure, non-custodial environment, we’re paving the way for a new era of financial freedom. Today, we’re not just launching a product; we’re launching a movement—one that will shape the future of decentralized finance on Bitcoin.”
The expansion of Bitcoin DeFi is seen as a key to unlocking up to $1 trillion in dormant capital within the Bitcoin ecosystem. This could open up new avenues for users to earn rewards through Bitcoin DeFi liquidity provision, engaging in lending, borrowing, staking, and yield farming activities. With Dharma, Velar aims to let users maintain self-custody of their assets while exploring the diverse opportunities the Bitcoin DeFi space offers.
Velar noted in a separate blog post that Velar Dharma aims to be a comprehensive DeFi suite for the Bitcoin ecosystem, offering core functionalities such as trading, liquidity provision, staking, IDO launchpad, and yield farming.
Dharma is part of Velar’s ongoing efforts to develop a comprehensive range of Bitcoin-based products. To fuel the development of its innovative Bitcoin DeFi suite, Velar secured $3.5 million last month in a funding round backed by Bitcoin Startup Lab, CMS Holdings, and Black Edge Capital. The funding’s goal is to support the development of a Bitcoin DEX for perpetual swaps.