Elastos Secures $20 Million to Enhance Bitcoin’s Role in Decentralized Finance
Elastos, a pioneering project dedicated to transforming Bitcoin into a more effective foundation for decentralized finance (DeFi), has successfully raised $20 million to further its ambitious objectives. This initiative aims to scale its Bitcoin DeFi protocol, BeL2, establishing it as a vital utility layer within the realm of the world’s original blockchain.
The funding comes from Rollman Management, a private investment firm, with whom Elastos plans to expand the capabilities of its merge-mined ELA token, positioning it as a Bitcoin reserve asset. In an email correspondence with CoinDesk on Thursday, Elastos detailed its strategic vision for leveraging this funding.
Merge mining, the innovative process that enables the simultaneous mining of two or more cryptocurrencies, is a cornerstone of Elastos’ approach. The BeL2 protocol is specifically designed to allow Bitcoin holders to collateralize their BTC directly from their wallets, thereby gaining access to Ethereum’s smart contract functionalities. This includes capabilities such as minting stablecoins and engaging in peer-to-peer borrowing.
Elastos is among a multitude of projects keen to tap into the approximately $2 trillion wealth currently held in Bitcoin. By developing DeFi services that can be sustained by Bitcoin’s substantial liquidity, these projects aim to unlock Bitcoin’s full potential. DeFi relies heavily on both liquidity and security—two attributes that Bitcoin offers with a proven track record that surpasses any other blockchain. However, historically, the Bitcoin network has been constrained by a lack of utility, preventing DeFi projects from fully utilizing its capabilities. Elastos, alongside other innovative ventures, is determined to change that narrative.
