Clover Finance Raises $3M in Seed Funding; Bringing Ethereum DeFi Apps to Polkadot

  • Clover Finance, a Polkadot parachain, completes a $3 million seed round funding to launch a developer-friendly framework for DeFi applications to move from Ethereum to Polkadot.
  • Additionally, Clover Finance will also create a two-way peg for Bitcoin and Ethereum blockchains.

Clover Finance, a cross-chain compatibility parachain on Polkadot, completed a $3 million seed funding round led by top firms including Polychain Capital, Hypersphere, Bithumb Global Divergence Ventures, a Medium blog post reads. The firm aims to use the funding to provide easy-to-access infrastructure for developers and a “one-stop EVM-compatible framework” enabling Ethereum-based decentralized finance (DeFi) applications to move to Polkadot.

This places Clover Finance in a tight race with MoonBeam Network and DeFi ecosystem Acala, who recently announced solutions to enhance Ethereum Virtual Machine (EVM) compatibility on Polkadot.

The seed round funding will also enhance and accelerate product development, expand the Clover Finance ecosystem and improve partnerships with other firms in the crypto space. This targets providing a more user-friendly platform fostering the adoption of blockchain technology and DeFi across developers and end-users.

Notwithstanding, Clover Finance is planning a future bridge with Bitcoin and Ethereum. Adding to its innovations such as gas redistribution, gasless transactions, and identity-based fee-schedule (which measures gas according to the frequency of transactions), Clover Finance will launch “trustless 2-way pegs between Ethereum and Bitcoin”.

The two-way pegs for Bitcoin, still at the infancy stage, will use new technology, a built-in SPV chain simulation, to connect two blockchains. The technology provides the “possibility to natively inspect a Bitcoin or Ether transaction without storing/ verifying the entire blockchain history.” Polychain general partner Tekin Salimi said,

“One of the challenges prior Bitcoin-Ethereum bridge attempts faced was in Bitcoin’s limited scripting language. We think the Bitcoin/Ethereum bridge is the most interesting feature, as it’s unique to Clover.”

However, the two-way pegs heavily depend on successful implementations and changes on the Bitcoin core network.

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