X21 Digital, a venture capital company, has led the initial $3 million investment round for Atomiq DeFi, a decentralized finance platform using atomic-swap powered technology on Bitcoin. Thanks to the support from the Mintlayer layer-2 protocol, Atomiq DeFi will benefit from this financial boost.

With a $1.5 million grant from Mintlayer’s Ecosystem Fund and incubation from the company itself, Atomiq DeFi has received backing from various venture capital firms like Spicy Capital, NXGen, DCI Capital, AlphaBit, and Altcoin Buzz. Their product suite includes AtomiqDEX, AtomiqWallet, AtomiqPad, and AtomiqBridge to facilitate movements between different chains.

Strategic alliances have been formed with other Bitcoin DeFi initiatives such as SatoshiSync, Portal, and OrdinalsBot to create a more coherent Bitcoin ecosystem. Individuals like Charlie Shrem of the Bitcoin Foundation and Lester Lim of X21 Digital have expressed excitement over the potential of Atomiq DeFi’s technology.

Atomiq DeFi aims to tap into the $500 billion Bitcoin DeFi industry, with plans for collaboration with premier launchpads. By introducing innovative features to the Bitcoin network, they seek to enhance Bitcoin’s role in DeFi without the need for tokenized versions like WBTC, which introduce centralization. Atomic swaps offer a solution by allowing direct transactions across blockchains without the need for custodians.

These advancements in Bitcoin DeFi aim to improve the functionality and interoperability of the network within the DeFi ecosystem. Atomic swaps have emerged as a promising solution to tackle the challenges faced by Bitcoin DeFi, offering a decentralized alternative to tokenized versions like WBTC.