Crypto Lender Dharma Launches New Savings Platform in Closed Beta

Dharma, a Coinbase-backed peer-to-peer lending platform, on Thursday, announced the launch of a new version of its platform with a new savings product.

With this, the company is slowly pivoting from its existing crypto lending services and focusing more on the newly launched product.

For the new platform, the San Francisco-based company has partnered with the Ethereum-based money market Compound and will use its protocol as infrastructure, per the official blog post.

For now, the new platform is in a closed beta stage, and only the company’s previous clients can access it. However, it has plans to open up the beta stage within weeks for further testing.

Dharma also detailed that the new version will make its smart contracts open source prior to the release of the production stage.

A decision based on statistics

The Coinbase-backed company’s plan to pivot from its older business plan is justified as it has seen a significant decrease in the issued loans recently - $6.9 million in loans last April went down to $1 million in June, per the data from Loanscan. Although the firm recorded an uptick in the following month, on August 7, it suspended new deposits and loans on its platform.

Compound, on the other hand, is thriving as the originations on the platform increased from $12 million in May to $43 million in July.

Although the new platform will only offer to lend initially, it will also provide lending and borrowing services at fixed interests based on Compound’s Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term pool. With “instant matching,” the lenders of the platform will immediately earn interests on the deposits.

“When we launched Dharma V1 to the public in April, we announced our aspiration to become the easiest place to borrow and lend Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term,” the official blog stated.

“[Now] we set our sights on a new, audacious mission: to build the first internet-native, borderless bank — so that everyone, everywhere has the tools to prosper.”