ETH-Based Dharma Labs Provides Loans For Bitcoin Traders And Crypto Holders With New Funding Round
Dharma Labs Provides Loans For Traders And Crypto Holders After Successful Funding Round
The world of crypto finance is growing, which means that there are certain tools that it will need to offer similar resources, like loans. Dharma Labs, which is responsible for having built the Dharma protocol for decentralized lending businesses, has developed its first product towards offering loans.
The product, Dharma Lever, is presently in a closed alpha release, but it will make it possible for holders of large sums of crypto and for traders to get loans when they need it. The company recently acquired $7 million as the result of a funding round that was led by a fintech-minded venture capital firm named Green Visor Capital. Other investors that supported the funding include Y Combinator, Passport Capital, Coinbase Ventures, and Polychain Capital. The investments during the funding round will ultimately help with the engineering and growth teams.
The CEO for Dharma, Nadav Hollander, stated,
“In the same way that Uber made it both easy and cheap to get a ride from anywhere in the world, we believe Dharma Lever will make accessing margin lending easy and cheap for anyone in the world.”
In a report from The Block, the firm’s marketing head Max Bronstein said,
“Lever is the smart-contract alternative to Genesis. It is an easy to use software tool for anyone looking to borrow crypto-assets.” He added, “Investors can take out loans against a number of different assets in sheer minutes, counter-party risk can be eliminated by smart contracts, borrowers can freely move their principal anywhere they’d like, and most importantly, all of this can be done at almost half of the cost offered by traditional lenders.”
Dharma Lever’s current website offers many solutions that are presently unavailable for crypto users, which is mainly expected to be used by investments on the margin by traders. The trader’s wallet is directly involved in the transactions without any extension required. Every loan is controlled by a smart contract, which means there is no trust required.
To appeal to the demographic, the website for Dharma Lever also promises that the loan rates provided to users will be much better than what exchanges presently offer. The company said, “Without a central point of failure, Dharma’s financial services simply ‘can’t be evil.’”
Even though the crypto rush has slowed down, there are still many companies that are emerging with revamped reservices and crypto versions of traditional products. A compound, for example, is developing a money market type of platform for crypto, while Paradigm is developing a completely decentralized order book.
With greater robustness in the industry, the opportunity to thrive is much more substantial. Mike Walsh, the general partner at Green Visor, said,
“In an industry where economies are natively digital, we believe Dharma’s technology will become a necessary piece of infrastructure for future growth.”
Coinbase Ventures, one of the investors, agrees.
VP Emilie Choi of Coinbase’s ventures arm said, “Dharma’s lending product makes it easy for developers and people to create loans that are trustless and managed on-chain. We view companies like Dharma, and their Lever product, as a sign that the crypto ecosystem is maturing, and an important step on the path to a more open financial system.” Referring to Hollander’s time as a Coinbase intern, Choi added, “We’re proud to support our alumni as they progress in their crypto careers and make new and novel contributions to crypto.”