Cardano to Add DeFi Capability with Bondly
2 min readIOHK, Cardano’s creator, tweeted the announcement, calling it a ‘huge step’ in the company’s mission.
Cardano is rolling out a package of updates under the name Goguen. These updates include smart contracts, decentralized applications, and the ability to utilize native tokens. In October, the team announced a timeline for Goguen’s release, which should be before the end of February, 2021. With the Bondly partnership, Cardano now has something being implemented on it from the very beginning.
Connecting the dots
Bondly Finance, which is best known for its Polkadot decentralized finance (DeFi) app platform, sees the Cardano tie-up a complement to its current Ethereum and TRON-based offerings. Before the February launch, Bondly will import its BONDLY coin to Cardano. Further steps include integrating BSwap and BONDProtect, Bondly’s over-the-counter trading platform, and decentralized escrow and buyer protection products, respectively.
Connecting with Cardano gives Bondly a performance boost. Currently, Ethereum gives transactions using its native ETH priority over those using other tokens. Cardano does not have that limitation. So, after Goguen goes live, Cardano will be able to match much of Ethereum’s capability but with less chance of a slow-down in case someone invents Cardano Kitties.
Getting Liqwidy
IOHK also announced on Dec. 8 that it would connect with another company for its Project Catalyst. This project is for experiments to realize vision for the Cardano community in terms of openness and democracy. DeFi lending market Liqwid will be the first company to work with IOHK on Catalyst. Liqwid already works in the Cardano environment to offer users a way to lend and borrow assets.
Ripe for the picking
Cardano’s moves come at a time when the decentralized finance field is maturing. Growing pains make this an opportunity. According to Dappradar, Ethereum, where most of the DeFi activity occurs, is expensive. This is a problem in an industry based in part on the idea that fiat-currency based asset transfers cost too much. Furthermore, the expense issue directly affects DeFi projects. According to Dappradar, 85% of the daily active wallets in Ethereum were DeFi apps.
Ethereum activity is also reaching all-time highs. As we reported, both the number and percentage of active ETH addresses has been increasing steadily for over a year. Transaction volume increased as well – up 1784% year-on-year at the end of November, according to Dappradar.
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