Home News Startup Alex raises $5.8M to create a Bitcoin-based DeFi platform

Startup Alex raises $5.8M to create a Bitcoin-based DeFi platform

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The team of the decentralized Alex platform based on the Stacks blockchain raised $5.8 million during a funding round led by White Star Capital.

Venture capital firms Cultur3, OK Blockchain Capital and GBIC also participated in the round. Thus, the project will use the funds raised to expand the development team.

The Alex team is creating a universal decentralized finance (DeFi) platform that allows you to place and lend Bitcoin (BTC); USDC stablecoin and Stacks-based tokens for a certain period at a fixed rate. Moreover, the protocol supports the decentralized exchange of assets both on the basis of an automatic market maker mechanism and on the basis of an off-chain order book.

Launching the main network

Alex co-founders, Chiente Hsu and Rachel Yu have previously developed quantitative strategies for a number of large banks, including Credit Suisse, Goldman Sachs and Morgan Stanley. Hsu is also a chief executive officer of the company. She believes that crypto has the potential to simplify many financial processes. And that this funding will allow them to create new opportunities for women and other marginalized groups.

“Stacks makes Bitcoin a programmable base layer, opening up the possibility of launching decentralized applications and smart contracts,” the project’s website says.

In addition, the Alex test network has been operating since September 27. The launch of the main network is scheduled for November 30, 2021.

Stacks

“We want to build this financial service protocol for the unbanked and banked that’s truly permissionless and trustless. There is no barrier to entry to using this service,” Hsu told in the interview with CoinDesk.

Recall that earlier in October, BitGo integrated Stacks to generate income in BTC. Stacks is an open-source network for creating smart contracts and DeFi bridges to Bitcoin. Initially, the protocol used the hash power of the first cryptocurrency network in combination with the Proof-of-Burn mechanism.

According to Stacks CEO and co-founder Muneeb Ali, a new consensus mechanism (Proof-of-Transfer, PoX) can stimulate participation in the network by offering rewards in BTC. Which was not possible before the advent of the protocol.

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