With the addition of the Liquity protocol to its product selection, Bitcoin Suisse has begun giving its clients decentralized financing (DeFi) services.
All interactions with the Liquity smart contract will handle by the Swiss firm on behalf of its clients. Only those with more than $500,000 on the platform will be able to use the product.
Customers can use Ethereum (ETH) collateral to mint and borrow Liquity Dollar (LUSD) stablecoins using the protocol.
Smart Contract Interactions
Bitcoin Suisse said on April 20 that it will handle all smart contract interactions and system monitoring on behalf of its clients. It will also allow you to trade your borrowed LUSD token for any fiat cash.
Bitcoin Suisse is a centralized crypto and financial services firm based in Switzerland created in 2013. It primarily caters to institutional investors, offering services such as cryptocurrency trading, custody, lending, and staking.
In April 2021, Liquity, a DeFi borrowing protocol launches. It allows customers to deposit Ethereum into its smart contract as collateral. At the same time, users can borrow its native LUSD stablecoin at 0% interest.
Liquity’s deal currently has a total value of more than $1.1 billion.
Dr. Dirk Klee is CEO of Bitcoin Suisse. He said the company pleases to take a “major step” toward providing decentralized solutions to its clients. DeFi, he claims, provides considerable advantages over traditional financial services by being more open, transparent, and competitive.
Bitcoin Suisse claims it’s only available to a “very tiny proportion” of its clients who want to borrow more than $500,000.
DeFi Becomes a Particular Interest
Both the crypto and traditional finance sectors increases interest in DeFi. According to DeFi Llama, the ecosystem’s current total value locked (TVL) is exceeding $215 billion. This is not far from its all-time high of $254.8 billion set on December 2nd, 2021.
DeFi infrastructure increasingly uses by centralized services. It either provides a single point of access to decentralized services or backs its products with DeFi smart contracts or liquidity.
On the other hand, Binance announced support for using PancakeSwap, a decentralized exchange (DEX), from within the Binance app in March. The DEX integrates into the company’s consolidated platform. It also releases an improved blockchain bridge in the same month, allowing assets to link from any blockchain.
Blockearner, an Australian finance app, has backed its “Yield Account” offering. With DeFi lending methods Aave and Compound Finance, it provides a 7% APY. Users must only deposit Australian Dollars, which the app will invest in DeFi on their behalf.
Moreover, Bitcoin Suisse has been incorporating crypto technology into its services for a long time. It was the first cryptocurrency payment processor in Switzerland to include the Bitcoin (BTC) Lightning Network in November 2021. This is part of its drive to encourage more people to use cryptography.
