A new wave of DeFi platforms and products offering decentralized finance has kicked off in the blockchain community.
DeFi is an open-source ecosystem built on top of blockchain technology. It empowers the consumer to control his/her assets without utilizing the services of traditional financial institutions.
Several firms are looking to expand their network into the DeFi ecosystem. However, much of the DeFi community and user base is centered on Ethereum. Developers on other chains are playing catch-up.
General Protocols, a DeFi startup, raised almost $1 million this week to base DeFi on Bitcoin Cash. The firm intends to utilize these funds to develop its chief product, AnyHedge, on top of Bitcoin Cash. AnyHedge is an open-source tool that OTC desks and exchanges will install to build a new market with just a smart contract.
According to the development’s press briefing, the recent funding is led by Marc De Mesel, a crypto trader. The firm is excited to receive seed capital to accelerate the goals in a direction to deliver DeFi to the Bitcoin Cash community.
President of General Protocols said:
“We are delighted that aligned investors are supporting us in our vision to bring defi to Bitcoin Cash. We are building a team of dedicated supporters of peer to peer electronic cash here at General Protocols.”
Almost DeFi Project Employee Ethereum
Developing a DeFi network on the Bitcoin Cash platform might be a challenge for General Protocols.
Presently, most DeFi projects are based on the Ethereum blockchain. According to data aggregator Defiprime, there are 213 notable DeFi projects, and 195 of those are developed on the Ethereum blockchain.
Other supported platforms like Bitcoin, Tron, and EOS make up just 10% of the DeFi space. This means General Protocols has to maneuver uncharted waters as it becomes a pioneer of Bitcoin Cash DeFi.
The DeFi market is currently at an infancy stage and is ripe for disruption. Over the past few years, value locked in DeFi has built up to more than $900 million. This is a tiny fraction of the overall cryptocurrency market cap, pointing that any DeFi development launching even in 2020 will be one of the earliest participants in the eventual timeline of DeFi.