Lava, a financial technology company, has opened a new self-custody wallet and decentralized finance (DeFi) platform in Bitcoin. Using Lava’s loan protocol, users can borrow stablecoins against native bitcoin, eliminating the risks associated with bridge hacks and custodian rehypothecation.
CEO Shehzan Maredia highlighted the advantages of Lava’s lending mechanism, saying, “With Lava, people can borrow clearly without the risk of rehypothecation and without relying on bridges or custodians. cryptographic assurance that the rules of their contracts will be honored.” Lava achieves this through invisible smart contracts called discreet log contracts (DLCs), which ensure the integrity of collateral and enable programmable loan initiation and repayment without the need for intermediaries.
According to a press release sent to Bitcoin Magazine, the Lava wallet aims to empower individuals who face challenges in traditional banking, offering innovative security solutions and safety checks to avoid transaction errors. Maredia said he sees bitcoin and the dollar as the two most important assets in the coming decade. Lava’s goal, the press release says, is to create a bitcoin and dollar-centric financial experience that gives users true financial freedom, enabling them to take control of their finances and simplify management. of money.
In an interview, Maredia expressed gratitude to his cofounder, team, investors, and supporters, stressing that this is just the beginning for Lava. The company says it intends to continue to advance its mission of making finance sovereign and simple.
Lava’s self-custody wallet is currently available on mobile platforms, including iOS and Android, with plans for additional interfaces in the future.
The company says it seeks to differentiate itself from other self-custody wallets through a user-centered financial experience including offering to borrow against bitcoin, directly buy bitcoin and stablecoins, seamless bank account transfers and simplified transactions. Security is a top priority – Lava has stated that there will be future enhancements such as collaborative custody and cold wallet integration.
Disclosure: Lava is a portfolio company of BTC Inc., the parent company of Bitcoin Magazine.