Venture Capitalist Tim Draper Backs Velar Startup Aiming to Transform Bitcoin DeFi

Velar, a Bitcoin-focused DeFi startup led by CEO Mithil Thakore, has secured $3.5 million in funding led by Silicon Valley venture capitalist Tim Draper. Velar aims to unlock Bitcoin's dormant liquidity by leveraging an AMM protocol called Dharma, which enables decentralized finance tools and trading pairs on the Bitcoin network. By utilizing Stacks technology for smart contract execution, Velar seeks to integrate Bitcoin into the broader DeFi ecosystem, aiming to replicate the success seen on Ethereum and capitalize on Bitcoin's robust security and vast liquidity.

Venture Capitalist Tim Draper Invests in Velar, a Startup Aiming to Revolutionize Bitcoin's DeFi Capabilities

Silicon Valley, California - Prominent venture capitalist Tim Draper has led a $3.5 million funding round for Velar, a six-employee startup poised to reshape decentralized finance (DeFi) on the Bitcoin network.

Velar, founded by CEO Mithil Thakore, is strategically dedicated to developing DeFi tools on Bitcoin, which has traditionally lagged behind Ethereum in terms of DeFi activity. The startup has unveiled plans to introduce a perpetual swaps exchange, a crucial advancement given Bitcoin's lack of native support for smart contracts, essential for most DeFi applications.

Velar's approach is innovative, utilizing the Bitcoin network for DeFi through its automated market maker (AMM) protocol, Dharma. Dharma, inspired by popular Ethereum-based AMMs like Uniswap V2, endeavors to unlock the immense liquidity of Bitcoin, estimated at over $800 billion. The protocol's mainnet launch will include trading pairs such as STX>

The funding round, which included participation from Bitcoin Startup Lab, CMS Holdings, and Black Edge Capital, will support the development of Velar's suite of products. These products aim to enhance Bitcoin's utility in DeFi while preserving its core principles of decentralization and security.

"Our vision is to bring a substantial portion of Bitcoin's dormant liquidity into decentralized finance," said Mithil Thakore, Velar's co-founder and CEO. "This funding round validates our approach and technology."

Velar's initiative aligns with the Bitcoin network's efforts to expand its functionality and attract more users amidst the increasing competition from other blockchains. By diversifying the types of transactions that Bitcoin can handle, Velar positions itself as a pioneer in a nascent market segment poised for growth as investors and users embrace the possibilities of Bitcoin-based DeFi.

The funding round underscores the growing recognition of Bitcoin's potential in the DeFi space. Velar's platform, utilizing Stacks technology, enables the execution of smart contracts and DeFi applications directly on the Bitcoin network, leveraging Bitcoin's robust security features without the need for a separate blockchain.

Velar's approach has garnered significant support from the venture capital community, underscoring the belief in its ability to revolutionize Bitcoin's DeFi capabilities. The startup's platform is poised to drive the adoption of DeFi on Bitcoin, broadening the horizons of the cryptocurrency and unlocking its immense potential in the rapidly evolving DeFi landscape.