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The team of bitcoin exchange P2P Hodl Hodl, announced that it has entered into a strategic alliance with Bitfinex, one of the largest centralized cryptocurrency exchanges.
The press release, published on June 7, 2021 on the Hodl Hodl portal, reveals that, through this commercial alliance, users of the exchange will soon see the influx of greater liquidity in the loan service (lend).
Notably, by establishing this agreement, Bitfinex showed interest in the Hodl Hodl API, examining various solutions that could be built about existing services of the P2P platform. Now, in addition to providing a liquidity boost, the teams are also exploring building non-custodial bitcoin lending solutions with the Bitcoin Lightning Network.
We are very excited to partner with such an experienced and influential industry player. The knowledge and professional experience that we could take from the Bitfinex team is priceless and we see that the cooperation is revolutionary for all of our current and future developments.
Max Kei, CEO of Hodl Hodl.
It should be noted that one of Hodl Hodl’s problems in some countries is low liquidity, compared to other P2P exchanges, especially in trading operations. This type of commercial agreements could attract new users to the platform, which differs from others by not requiring a KYC (acronym in English for “know your customer”) to its users.
For Hodl Hodl, the cooperation with Bitfinex “is revolutionary for all current and future developments.” Source: Hodl Hodl.
The statement affirms that Hodl Hodl team will remain independent and will adhere to the core value of creating non-custodial, anonymous and exclusive products for bitcoin.
In regards to Bitcoin’s Lightning Network, recently, Hodl Hodl and Pandora Core partnered to explore development opportunities for a decentralized exchange (DEX) based on this second layer solution. Pandora Core is currently working on the RGB concept, a smart contract system capable of running on the Lightning network, designed with privacy and scalability in mind.
Bitfinex has been one of the first exchanges to support RGB and, together with Hodl Hodl and Pandora, they have plans to help further develop the system and increase its adoption. For Hodl Hodl, RGB presents an opportunity for the development of non-custodial solutions based on the Lightning network.
Hodl Hodl and its P2P lending platform with bitcoin
The referenced loan platform has been active for several months. It is a system of loans with a guarantee in bitcoin that works separately from its main portal, as reported by CriptoNoticias on January 20, 2021.
In short, what Hodl Hodl offers is a free loan market with bitcoin as collateral in a non-custodial escrow, which operates centrally; that is, everything happens within the Hodl Hodl servers.