LavaThe financial technology company has unveiled a new self-custodial wallet and decentralized finance (DeFi) platform on Bitcoin. With the Lava Credits protocol, users can borrow stablecoins in exchange for their native bitcoins, eliminating the risk associated with bridge hacks and custodial repositioning.
CEO, Shehzan Maredia, highlighted the advantages of Lava’s borrowing mechanism, saying: “Using Lava, people can borrow transparently without risk of restructuring and without relying on bridges or custodians. Users will not have to trust the counterparty and can borrow using a system that gives users assurance encrypted by respecting the rules of their contracts.” Lava achieves this through invisible smart contracts called Secret Record Contracts (DLC), 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, Lava wallet aims to empower individuals who have challenges with traditional banking services, offering innovative security solutions and safety checks to prevent transaction errors. Maridia said he envisions bitcoin and the dollar as the most important assets of the next decade. The press release stated that Lava’s goal is to create a financial experience centered around bitcoin and the dollar that gives users true financial freedom, empowers them to control their finances and simplifies money management.
In an interview, Maridia expressed his gratitude to his co-founder, team, investors and backers, stressing that this is only the beginning for Lava. The company said it intends to continue to advance its mission of making financing sovereign and simple.
The Lava self-custody wallet is currently available on mobile platforms, including iOS and Android, with plans for additional interfaces in the future.
The company said it intends to differentiate itself from other self-custodial wallets with its experience in user-centered financial benefit including offering to borrow against bitcoin, direct purchases of bitcoin and stablecoins, seamless bank account transfers, and simplified transactions. Security is a top priority – Lava mentioned that there will be future improvements such as collaborative saving and cold wallet integration.
Disclosure: Lava is a portfolio company of BTC Inc. , the parent company of Bitcoin Magazine.