Recently, Charles Hoskinson, the founder of Cardano, proposed integrating XRP into the decentralized finance (DeFi) ecosystem of Cardano using the new Midnight sidechain.
Charles Hoskinson's Proposal
Hoskinson mentioned in his livestream plans to create a cross-chain bridge between XRP and Midnight. He noted that XRP tokens would be able to utilize Cardano's DeFi services such as staking, yield farming, lending, and liquidity pools.
Midnight: The Private Bridge to DeFi
Midnight is a zero-knowledge-based sidechain developed by Input Output Global since 2022. It supports confidential smart contracts and is set to be operational by 2025. Hoskinson emphasized that XRP users would benefit from secure and private DeFi interactions through this bridge.
Gaps in XRP Ledger's DeFi
XRP Ledger, developed by Ripple Labs, supports fast and low-cost payments but lacks built-in DeFi infrastructure. The proposed bridge to Midnight may provide XRP users the chance to participate in on-chain DeFi activity for the first time, thus enhancing their earning opportunities.
Integrating XRP into Cardano's infrastructure could be a significant advancement for both ecosystems, expanding functionality and user opportunities.
