The first-ever Bitcoin DeFi protocol, Cardinal, has been successfully launched on the Cardano platform. This initiative opens new opportunities for using BTC in decentralized finance.
Launch of Cardinal Protocol
Cardano founder Charles Hoskinson announced the launch of Cardinal on the social network X. In his words, "Welcome to the first Bitcoin DeFi protocol developed for Cardano."
Technology Behind Cardinal
The Cardinal protocol allows users to wrap any BTC UTXO and utilize it across various DeFi applications. The technology employed includes multisig wallets and hashed contracts that ensure the security of Bitcoin usage. According to Romain Pellerin's technical breakdown, users can redeem their BTC at any time using a fraud-proof exit process.
Benefits for Bitcoin Users
Cardinal offers new opportunities for Bitcoin holders, allowing them to use their assets in DeFi on Cardano. The protocol supports functionalities such as staking, lending, and NFT trading, all while retaining original ownership of the assets.
The launch of the Cardinal protocol marks a significant step in the development of DeFi on the Cardano platform. Not only does this protocol expand the use of Bitcoin in financial instruments, but it also ensures the security and transparency of transactions.
