“Dharma is the easiest place to save your money from anywhere in the world.”
That’s the new mission statement for decentralized finance (DeFi) platform Dharma as described by Brendan Forster, co-founder and COO of Dharma Labs, which built the Dharma protocol.
On Thursday, Dharma Labs announced it would be relaunching its services in closed beta beginning with a new savings product.
“We let people save in stablecoins,” Forster told CoinDesk. “What the new product enables is the instant depositing of stablecoins and the instant earning of interest on those stablecoins.”
Having raised $7 million in February 2019, Dharma Labs launched its first product on the ethereum blockchain in April. At the time, Dharma was meant to facilitate peer-to-peer lending and borrowing of cryptocurrencies at fixed interest rates and for fixed durations.
Now, by using existing liquidity pools of crypto on the lending platform Compound, Dharma V2 moves away from fixed interest rates and loan terms to variable ones that dynamically change and don’t require users to lock-up their funds. The company’s new site advertises interest rates of up to 11.2 percent.
The importance of such a pivot, according to Forster, is all about “ease of use.” In spite of the early success Dharma displayed in its first few weeks, Forster said Dharma users wanted more flexibility – which the original Dharma protocol could not provide.
“[Dharma] was successful but what we heard from our users was that it was too narrow of a use-case. What they wanted was far more tailored around the saving of money, rather than the lending directly of money,” said Forster. “That led to a several-month-long investigation in which we first attempted to build our vision for the savings products on Dharma V1 but ultimately decided … to build Dharma V2 on the Compound protocol.“