Elastos Raises $20 Million for Bitcoin DeFi Protocol
Elastos, a decentralized infrastructure provider, has successfully raised $20 million in funding aimed at enhancing its Bitcoin DeFi protocol, BeL2. This initiative seeks to create a utility layer that leverages the foundational capabilities of Bitcoin for decentralized finance (DeFi).
Funding Details
The funding was acquired from Rollman Management, a private investment firm. Elastos intends to use these resources to expand its merge-mined ELA token as a Bitcoin reserve asset, indicating a strategic move to fortify its position in the blockchain space.
What is Merge Mining?
Merge mining allows the simultaneous mining of multiple cryptocurrencies, maximizing resource efficiency while enhancing network security.
BeL2 Features
The BeL2 protocol enables Bitcoin holders to collateralize their BTC holdings, granting them access to Ethereum smart contract functionalities, including:
- Minting stablecoins
- Engaging in peer-to-peer borrowing
Market Context
Elastos is part of a broader trend aiming to tap into the $2 trillion locked in Bitcoin, creating DeFi services that can utilize Bitcoin's liquidity and security. While Bitcoin has a proven track record, it has historically lacked the necessary utility to serve as a foundation for DeFi projects, a gap that Elastos and similar projects are actively working to fill.
Further Reading
Read More: Bitcoin-Based Stablecoin USDh Secures $3M in Liquidity
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