Lava, founded by Shehzan Maredia in January 2022, aims to simplify the process of custodying Bitcoin. Maredia and his team have developed an app called Lava that allows users to purchase and transact with Bitcoin and stablecoins globally, as well as hold their Bitcoin in self-custody without needing a seed phrase. Maredia believes that seed phrases are a barrier to mainstream adoption of Bitcoin and developed a solution called Lava Vault, a unique multisignature self-custody setup that uses a two-of-two recovery system involving a four-digit PIN and a cloud account attachment, known as the Lava Smart Key.
Lava Vault seamlessly integrates with Lava Exchange, allowing users to purchase Bitcoin at the best rates available before automatically sending it into self-custody. This feature simplifies the onboarding process for new users who may find it challenging to differentiate between custodial and self-custodial wallets. By providing a seamless experience, Lava aims to increase the adoption of self-custody among Bitcoin users.
Recently, Lava introduced a beta version of a new product called Lava Loans, which allows users to borrow against their Bitcoin without giving up custody or using a custodian. This self-custodial borrowing option provides an alternative for Bitcoin holders who prefer not to sell their Bitcoin but still need liquidity. Lava Loans utilizes Discreet Log Contracts (DLCs) on the Bitcoin network, providing a safer and more secure smart contract solution compared to other platforms.
Maredia and the Lava team prioritize research and thorough testing before launching new products, taking a cautious approach to ensure the security and functionality of their services. Despite being in the early stages, DLCs have shown significant potential, but their adoption is limited due to the novelty of the technology. By building on this technology, Lava aims to expand the market for native Bitcoin collateralization and increase the use of DLCs in the industry.
Lava is a private company headquartered in New York, USA, with a team of 7 employees, including some remote workers. The company focuses on providing user-friendly self-custody solutions for Bitcoin and stablecoins, enabling individuals to securely hold and transact with digital assets without the complexities associated with traditional custody methods. Through innovative products like Lava Vault, Lava Exchange, and Lava Loans, the company aims to drive mainstream adoption of Bitcoin and decentralized finance practices.
