Bitcoin DeFi platform Elastos has secured a $20 million investment to boost the development of the world's largest cryptocurrency.
Elastos, a decentralized platform that just secured a $20 million investment from Rollman Management, one of the most reputable investment firms in the blockchain sector.
This milestone not only reinforces Elastos’ position as one of the most promising startups, but also marks a new chapter in the development of decentralized finance (DeFi) on the Bitcoin network.
Elastos, a bridge between Bitcoin and the DeFi world
Elastos is not just a DeFi platform; it is a ambitious decentralized web infrastructure which seeks to connect Bitcoin’s immense store of value with the flexibility and innovation of the DeFi ecosystem.
Unlike many platforms that build on top of other blockchains, Elastos focuses on directly powering Bitcoin, solving some of its inherent limitations to facilitate the creation of DeFi applications. Its vision is clear: to leverage Bitcoin’s security and established consensus, while offering the ability to program and run decentralized applications with the necessary efficiency and scalability.
Elastos works as a utility layer on top of Bitcoin, without competing directly with it. What it does is create an environment where users can access DeFi services using their Bitcoins as collateral, without needing to give up the security and direct ownership of their assets.
This is achieved through several technological innovations, including BeL2, its native Bitcoin DeFi protocol. BeL2 allows users to lock their Bitcoins in their own wallets and access a range of Ethereum smart contract services such as stablecoin creation, swaps, and peer-to-peer lending. This functionality is key as it allows users to harness the full potential of DeFi without the need to rely on centralized intermediaries or synthetic versions of Bitcoin such as Wrapped Bitcoin (WBTC).
Elacity, creating a decentralized community
Its other fundamental pillar is Elacity, an innovative Web3 platform that gives creators the ability to monetize their digital content in a decentralized way.
Through content tokenization, Elacity allows creators, whether musicians, YouTubers or podcasters, to sell access to exclusive content or establish subscription models directly with their audience, without intermediaries, while maintaining full control over their creations and earnings. This platform already shows promising results with some creators earning significant revenues in short periods.
In addition, Elastos uses an innovative decentralized governance system based on its native token, ELA. This token, merged with Bitcoin mining, is secured by the same computing power, which provides remarkable robustness and security. The Elastos community, through the consensus model Cyber Republic, participates directly in decision-making, ensuring transparency and democratic management of the project.
The Bitcoin DeFi Market: A Growing Ecosystem
This shows that the Bitcoin and decentralized finance market is not terra incognita, but at the moment, its potential is just beginning to be exploited. With a total value locked (TVL) exceeding $7.200 billion, according to Defillama, the Bitcoin DeFi ecosystem is in a phase of rapid growth. This increase in TVL coincides with the growing institutional adoption of Bitcoin, suggesting that we are at the beginning of a new era.
In this scenario, Elastos not only positions itself as another platform in the DeFi space, but also introduces innovative concepts that distinguish it:
- Total decentralization: All Elastos services are built on Bitcoin, eliminating the need to trust third parties.
- Scale and safety: By leveraging the Bitcoin network, Elastos ensures robust security without compromising scalability.
- Community governance: Through the Cyber Republic Consensus (CRC) model, users have decision-making power, ensuring that the development of the project reflects the interests of the community.
Furthermore, with the investment from Rollman Management, Elastos is well positioned to lead the development of DeFi on Bitcoin. While projects such as Stacks, RSK, and Babylon are already present in the space, Elastos introduces a unique approach that combines scalability, security, and community governance.
The future of Elastos and Bitcoin DeFi
All in all, the future of Elastos is very bright. With strong investment, innovative technology, and a clear vision for the future of Bitcoin DeFi, Elastos is well positioned to become a major player in this market. Its focus on interoperability between Bitcoin and DeFi platforms, the creation of a Web3 creator ecosystem through Elacity, and its decentralized governance model are elements that differentiate it from other platforms.
Adding to this, the growing institutionalization of Bitcoin, driven by the arrival of Bitcoin spot ETFs (exchange-traded funds), has also contributed positively to the development of Elastos. The increased adoption of Bitcoin by institutions means a higher demand for innovative and secure financial services, opening up a massive market for DeFi platforms like Elastos.
But beyond financial metrics and projections, Elastos’ true innovation lies in its focus on decentralization and user empowerment. By providing tools for creators to control their earnings and users to interact with their Bitcoins more efficiently and flexibly, Elastos is building a solid foundation for the next generation of decentralized financial services. Its ability to merge the security and reliability of Bitcoin with the flexibility and innovation of the DeFi world is its most valuable asset.
