Lambda Finance

Lambda Finance is a decentralized finance (DeFi) protocol operating on the Ethereum blockchain, specifically designed to enhance the utility of Bitcoin. The core of its business is a platform that allows users to leverage their Bitcoin holdings to mint btcUSD, a stablecoin pegged to the US dollar. This process enables Bitcoin holders to unlock liquidity and participate in DeFi earning opportunities without selling their assets, thus maintaining their long exposure to Bitcoin. The platform targets Bitcoin holders who want to generate yield from their assets within the DeFi ecosystem.

The company's primary product is the btcUSD stablecoin, which is fully backed by overcollateralized debt positions. A key feature of the protocol is its soft liquidation mechanism, a system designed to preserve user capital by avoiding the harsh, complete liquidations common in other lending protocols. The business model appears to be centered around generating protocol revenue through autonomous monetary policies that also work to maintain the stablecoin's peg to the US dollar. Lambda Finance operates in the growing Bitcoin DeFi (BTCFi) market, providing infrastructure to convert Bitcoin's value into a usable asset within the broader DeFi space.

In April 2024, Lambda Finance secured $1.8 million in an Angel funding round. The investment round saw participation from firms such as AladdinDAO, Datalinks, and Hashcow Group, indicating early-stage confidence from investors focused on the cryptocurrency and decentralized finance sectors.

Keywords: DeFi lending, Bitcoin DeFi, stablecoin, btcUSD, collateralized debt position, Bitcoin liquidity, Ethereum blockchain, crypto lending, decentralized finance protocol, BTCFi, yield generation, soft liquidation, crypto-backed stablecoin, blockchain finance, digital asset lending, AladdinDAO, Datalinks, Hashcow Group