The Bitcoin lending platform Lava announced the completion of a $200 million financing round, with participation from Anthony Pompliano and others

The Bitcoin lending platform Lava has completed a $200 million financing round and launched a new product—Bitcoin Line of Credit (BLOC). This product functions similarly to securities-backed loans or home equity lines of credit, but allows users to borrow flexibly using Bitcoin as collateral, without the monthly repayment or term limits commonly associated with current Bitcoin collateralized loan markets.

In addition, Lava has introduced two well-known angel investors, Bitcoin investor and entrepreneur Anthony Pompliano and EMJ Capital founder Eric Jackson. Lava is a closed-source custodial wallet that allows users to obtain loans of up to 50% of their Bitcoin balance (valued in USD) through the Lava app. Most loan products and USD payment channels can be used without providing personal information, which makes Lava stand out among many competitors, sitting between pure DeFi and more modern cryptocurrency financial institutions.

Additionally, Lava offers a "liquidation protection" feature that can withdraw funds from the Bitcoin balance deposited in the app and add them to the collateral account to protect users from liquidation during significant price fluctuations of Bitcoin.