Dharma, a Coinbase-backed peer-to-peer cryptocurrency lending firm, has announced the launch of a new version of its platform that includes a savings product.
According to the firm’s blog post the new platform is still in closed beta and, as such, is still only available to those who were using the first version of Dharma’s lending platform. The move sees the startup move from its existing lending services to focus on the new product.
Dharma’s new platform comes as a result of a partnership with the Ethereum-based Compound decentralized finance application, which lets users lend and borrow cryptocurrencies. Dharma is set to use Compound’s protocol as infrastructure to help offer “instant matching” borrowing and lending.
The startup’s new service seemingly focuses on letting users earn interest on their savings at a fixed rates as well as basic financial services. The blog post reads:
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.
Loanscan data shows that Dharma’s first platform was seeing users leave, as it went from nearly $7 million in loans in April to around $1 million in June, before suspending loans and deposits ahead of an ‘exciting new chapter’. Compound itself has been thriving, although a recent audit found vulnerabilities on the platform.
Dharma’s new platform is set to only offer lending at first, and is set to in the future start providing borrowing services at fixed interest rates as well, thanks to Compound’s liquidity pool.