Qtum Foundation Opens Up A $1 Million DeFi Fund to Lure App Developers Away From Rival Ethereum

For the moment, Ethereum is the front-runner when it comes to DeFi applications. Over the last few months, the price of ETH has been surging upwards at a dramatic speed. The coin has reached 2017 highs, given a prevailing rate of $430 according to metrics from CoinMarketCap.

Qtum Foundation announced on Monday that it would rolling out a DeFi fund worth $1 million as part of its effort to accelerate on-chain development within its smart contract ecosystem. The company’s founder, Peter Dai, further highlighted that the fund could be bootstrapped up to $5 million depending on the underlying needs of the Qtum DeFi network and contributing community.

The $1 million, allocated to Qtum’s DeFi fund, will be distributed to teams and solo developers looking to create efficient decentralized finance applications on Qtum’s blockchain. Notably, Qtum stakeholders are optimistic about disrupting Ethereum’s market share in DeFi, given the blockchain’s shortcomings in scalability and network fees.

Currently, Ethereum leads the pack for DeFi applications; recent months have seen the price of ETH surged significantly as a result. The coin has reached 2017 highs, given a prevailing rate of $430 according to metrics from CoinMarketCap. While this is the case, the lucrative DeFi market whose current TVL stands at $6.42 billion might soon find a platform in other networks as well.

That said, Qtum is one of the blockchain platforms that has since risen to the occasion in terms of challenging Ethereum’s DeFi dominance. The two blockchain platforms share some fundamentals, including the same smart contract and EVM languages. With this at the core, ETH DeFi developers have the option to transfer their projects on to the Qtum blockchain simply.

The Real Cutting Edge in DeFi

Qtum’s Proof-of-Stake (PoS) network boasts greater efficiency compared to Ethereum’s Proof-of-work (PoW) for scalability and network fees. As it stands, gas fees on the Ethereum network have been rising significantly, making it costly and often impossible to see promising projects through. The Buterin-led blockchain, however, plans to shift to a PoS network, however. This remains uncertain though, as the team has yet to signal on a possible mainnet launch date for ETH 2.0.

Qtum, on the other hand, is already proposing value in scaling DeFi ecosystems, the platform’s UTXO model and Decentralized Governance Protocol (DGP) enable developers to customize blockchain settings for smart contract compatibility. Also, this ecosystem features advanced privacy functions based on a zk-snarks on-chain protocol as well its own stablecoin ‘QCash,’ which debuted in 2017.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Edwin Munyui
Edwin Munyui
Edwin is a FinTech enthusiast with a particular interest in blockchain technology and cryptocurrencies. He has worked as an author in the blockchain space since 2017 and enjoys creating content that both crypto veterans and newbies can understand. His simple writing style and financial market knowledge have made him a reputable fundamental and technical analyst with the ability to handle any topic around blockchain and crypto over the years.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,511FansLike
2,795FollowersFollow
4,272FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

DeFi Growth & Stablecoin Surge Most Bullish Crypto Development: DCG State of Crypto 2020 Survey

39% of the respondents that involve 150 portfolio companies see DeFi as the most bullish crypto development of 2020, as per the DCG Founders...

Non-Custodial Bitcoin Exchange, Hodl Hodl, Launches Lending Service Without KYC

Hodl Hodl, a non-custodial Bitcoin exchange, is launching a KYC-free lending product for its customers. The exchange claims that its lending product would be...

Total Value Locked in Harvest Finance Surpasses $1 Billion, Up 366,200% Since September

Decentralized platform Harvest Finance that provides users a way to farm assets for the highest yields now has more than a billion dollars in...

Strong Institutional Demand for Bitcoin, CME Becomes Second Largest BTC Futures Market

Bitcoin's price made a big shift this week as the bulls gained control of the market and pushed it past $13,000. A similar shift has...

PoolTogether's ‘No Loss' Gambling Platform Utilizes Chainlink’s VRF on Ethereum to Select Winners

Chainlink announces its verifiable random function on the Ethereum mainnet, bringing a host of benefits to the decentralized platform. PoolTogether, a gamified savings platform...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today