The Polkadot parachain, Clover Finance, has recently closed a $3 million seed round for constructing a bridge between Polkadot and Ethereum-based DeFi apps, along with future plans to build a bridge with Bitcoin Blockchain. According to a blog post, Divergence Ventures, Hypersphere, Polychain, and Bithumb Global backed the seed round.
Clover Finance to Move Ethereum-Based DeFi Apps to Polkadot
Clover Finance is a cross-chain compatibility parachain on Polkadot, and it has recently managed to raise $3 million. This fundraising aimed to utilize the money to provide an infrastructure that is easy to use for the developers.
In addition to this, Clover Finance is aiming to develop a one-stop EVM-compatible framework that will enable DeFi apps to shift to Polkadot.
Clover Finance will now be in tight competition with Acala, the DeFi ecosystem that recently made announcements regarding solutions to intensify Ethereum Virtual Machine (EVM) compatibility, and MoonBeam Network.
Clover is not the only one as it joined Snowfork, a project based on Substrate, and ChainSafe, a coding house, in producing cross-chain bridges from Ethereum-based DeFi to Polkadot.
Burak Keçeli, Clover project lead, said:
“Clover aims to become the very first noncustodial bridge in the space.”
One of the necessary steps for applications like DeFi to work on Clover is the compatibility of the tech backend of Clover with the EVM.
Future Plans for Bitcoin
The team is still working on a two-way peg to the Bitcoin network, although it is still in its beginning phase. This will improve Clover’s partnerships with other companies in the crypto space.
The two-way pegs will be using new technology to build a connection between two blockchains, and the technology is a built-in SPV chain simulation.
Tekin Salimi, the general partner of Polychain, said:
“The technology provides the possibility to natively inspect a Bitcoin or Ether transaction without storing/ verifying the entire blockchain history.”