Cardano (ADA) founder Charles Hoskinson has finally announced the innovation he has been talking about for a long time. Accordingly, Hoskinson announced the launch of Cardinal, the first Bitcoin DeFi protocol on the Cardano network.
Cardano has launched the Cardinal Protocol for Bitcoin (BTC) DeFi. Cardano now enables BTC lending, staking, and more without central custody and without the need for third-party custodians.
The Cardinal Protocol allows users to put their Bitcoin to work by lending, borrowing, or staking on the Cardano blockchain.
Cardinal is seen as a groundbreaking innovation for BTC and ADA, being the first solution to allow Bitcoin to access the Cardano ecosystem without requiring custody.
Finally, it was noted that Cardinal uses the secure MuSig2 multi-signature system. This method enables peg-in and peg-out transactions, keeps everything open and verifiable, and is also compatible with the Ethereum (ETH), Solana (SOL), and Avalanche (AVAX) networks.
Cardano CTO Romain Pellerin said that Cardinal Protocol is a big step forward and that there are some new innovations on the way. Future upgrades could include wallet support, zero-knowledge proofs, and deeper liquidity.
*This is not investment advice.
