The Elastos project has recently announced that it successfully raised 20 million USD to develop the BeL2 DeFi protocol for Bitcoin, aiming to make Bitcoin a stronger platform for decentralized finance (DeFi) applications.
Goals of Elastos
#Elastos is a decentralized infrastructure provider that is developing BeL2, a DeFi protocol that allows Bitcoin users to use their Bitcoin as collateral to participate in smart contract services on Ethereum, such as creating stablecoins and peer-to-peer lending. Elastos hopes to expand this protocol to utilize Bitcoin as a utility layer for DeFi transactions.
Fundraising and Developing ELA Token
With the raised funds, Elastos will continue to develop its ELA token while turning #ELA into a reserve asset for Bitcoin through a process called merge mining – mining two or more cryptocurrencies simultaneously.
Advantages from Bitcoin
Elastos is focusing on leveraging the massive 2 trillion USD asset pool stored in Bitcoin to develop DeFi services. $BTC stands out with its ability to provide liquidity and security, which are the requirements for #defi protocols to operate effectively. However, Bitcoin previously lacked the necessary features for DeFi projects, and this is what Elastos and other projects are striving to address.
