Feb 5, 2019 23:55 UTC
Feb 6, 2019 at 07:06 UTC
Dharma Labs, a blockchain lending firm from San Francisco has managed to raised funding worth a whopping $7 million from major investors. As per reports, the investors include key players such as Coinbase Ventures.
According to the reports that are doing the rounds in the world of crypto and blockchain, the newly funded company is thinking of using this massive capital for its new offering: Lever.
Lever is a platform designed to be able to disburse instantaneous margin loans to traders who deal in cryptocurrencies as well as investors with deep pockets, and high volumes.
The man who heads the marketing team of Dharma Labs, Max Bronstein, has reportedly said that their new platform Lever will be a lot like the Genesis Global Trading platform, with a twist in terms of heightened decentralization and the use of blockchain smart contracts.
Genesis Global Trading is basically a trade firm conducting over the counter or OTC trading in Bitcoin (BTC). From New York, it became the first trading firm of the area to have received a BitLicense.
It has recently released details about its 2018 transactions and we have come to know that it has processed a massive amount of $1.114 billion in loans over the course of the past year. Given these details, Lever has some big boots to fill if it is truly trying to be the next Genesis with an improvement.
Bronstein went on to say that Lever would make the process of lending easier by making it peer-to-peer in a way where both the lender and the debtor would remain discoverable over the platform.
Now, this, in turn, would effectively eliminate the need for having middlemen. The trust aspect would then be handled by a trustless system: blockchain technology.
With regard to how the model would work, Bronstein elaborated:
“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.”
The firm received its series A funding from not just Coinbase Ventures, but also venture capital firms such as Green Visor Capital, Passport Capital, Y Combinator and Polychain Capital.