Atomic Loans changes its name to Bitcoin only for DeFi.
The company calls Ethereum a „Jenga Tower“.
New scaling solutions based on Bitcoin are being researched.
The Trust Project is an international consortium of media organizations based on transparency standards.
On October 8, the company announced that it would abandon its previous cross-channel approach and work only with Bitcoin Era and its scale-up solutions.
The non-depository crypto lending platform Atomic Loans has been renamed Atomic Finance, abandoning Ethereum in the process to operate solely using Bitcoin infrastructure.
It has become one of the last cryptos platforms to be disenchanted by Ethereum and its increasing operating costs. Atomic Loans had the vision to bring Bitcoin to Decentralized Finance (DeFi) by allowing users to lock their BTC in a non-depository escrow in exchange for an ERC-20 loan in stablecoin.
We are leaving behind ETH and our previous cross-channel approach in order to adopt a # Bitcoin approach to create all our future products. #BitcoinOnly #BitcoinNativeDeFi
It’s time to move on to a thread
Ethereum, a „Jenga tower“.
The company’s blog announcing the move repeatedly refers to Ethereum as a „Jenga Tower“ to justify the withdrawal from the world’s most popular smart channel network.
It blames the rise of DeFi, the subsequent demands on the Ethereum network, the „degens“ investors and the whales that, in its view, have discredited the entire industry;
„Degenerate finance was not the kind of DeFi we were committed to. And the ETH/stablecoin whales transferring capital from one opportunity to another is certainly not where we intend to focus as a long-term addressable market.“
In essence, these DeFi clones and yield farms are built on top of Ethereum’s infrastructure, so blaming Ethereum itself for their failures is a bit presumptuous.
The denigration of ETH continued with criticism of rising gas prices and what it called a „questionable transition“ to ETH 2.0. The blog post added that he wanted to build a solid financial infrastructure for solid money in the long term and for this he only wanted Bitcoin.
ETH Transfer Value
Building on Bitcoin
In April 2020, Atomic Loans raised $2.45 million in a financing round led by Initialized Capital with the support of ConsenSys and Morgan Creek Digital.
Since then, the company has been looking for Bitcoin solutions such as Discreet Log Contracts (DLCs), Bitcoin oracle contracts, RGB which is a layer above the Lightning Network that will enable asset issuance and smart contracts, and Bitcoin Escrow contracts. The Lightning Network itself has recently been enhanced with the addition of larger „Wumbo“ channels.
Atomic Finance, as it is now called, is looking for what it calls Bitcoin-Native and Lightning financial tools, or LiFi, to create a new Bitcoin-based DeFi ecosystem.
Atomic Odds is the company’s first product to be a Bitcoin-driven prediction market using the oracle DLC infrastructure.