General Protocols Startup Raises $1 Million to Develop DeFi on Bitcoin Cash

The General Protocols startup has been able to raise over $1 million in a seed funding round. It is now working on the development of its Decentralized Finance (DeFi) on Bitcoin Cash (BCH).

This funding round enables the team based in Singapore to come up with their flagship product AnyHedge on Bitcoin Cash. As an open source derivatives tool, Anyhedge allows the creation of new markets with smart contracts when embedded by exchanges and OTC desks.

The investors that provided the fund include crypto trader Marc De Mesel. The team consists of two past Bitcoin.com employees and people who assisted in building the voluntary BCH Cash fundraising project Flipstarter.cash.

At the moment, DeFi is all about Ethereum. DeFi is simply digital assets, financial smart contracts, protocols and decentralized applications (DApps) built on a variety of blockchains.

In the words of General Protocol’s president, the firm is happy that investors who believe in what the firm is doing are supporting its focus on bringing DeFi to Bitcoin Cash. He continued that they are coming up with a team of committed supporters of peer-to-peer electronic cash at the firm.

However, DeFi on Bitcoin Cash is facing a challenge because of the network effects of projects based on Ethereum. Data provided by Defiprime shows that there are 213 DeFi projects listed; Ethereum is powering 199 and other platforms like BTC, EOS and TRX are supporting almost 10 percent.

Three months ago, the sum locked in the Defi market attained a lifetime high of $1.24 billion. As at the time of writing, it has reduced to $887 million and 99 percent is on Ethereum. 1.05 percent (valued at $9.3 million) of aggregated value locked is on Bitcoin’s Lightning Network.

In 2019, Bitcoin Cash introduced its version of a generic ERC-20 token through its Simple Ledger Protocol (SLP).

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Source: Cryptopress.

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