Polkadot parachain Clover Finance has closed a $3 million seed round for building a bridge between Ethereum and Polkadot, in addition to a planned future bridge with the Bitcoin blockchain.
“Clover aims to become the very first noncustodial bridge in the space,” Clover project lead Burak Keçeli said in a Telegram message to CoinDesk.
Clover’s tech backend is compatible with the Ethereum Virtual Machine (EVM), a necessary step for applications like decentralized finance (DeFi) apps to work on Clover. The startup has redesigned Clover’s payment scheme to increase ease of use for ordinary consumers as well. For example, Clover has a dynamic fee schedule that increases costs proportionally to use.
Plans for Bitcoin
The peg, in theory, would allow value to move between EVM-styled chains like Ethereum and Clover and the largest cryptocurrency, bitcoin.
“We believe Clover’s timing for launch gives it a unique edge to leverage upcoming Bitcoin protocol upgrades to facilitate two-way pegs between Bitcoin and Ethereum,” Polychain general partner Tekin Salimi said in a Telegram message to CoinDesk. “One of the challenges prior Bitcoin-Ethereum bridge attempts faced was in Bitcoin's limited scripting language. We think the Bitcoin/Ethereum bridge is the most interesting feature, as it's unique to Clover.”
Update (Feb. 18, 19:00 UTC): Added information regarding ChainSafe's Substrate/Ethereum bridge.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.