First DeFi project on Cardano shifts over from Polkadot
Decentralized e-commerce platform Bondly will be the first decentralized finance project to run on the Cardano blockchain as part of the platform’s roll-out of the Goguen smart contract functionality.
In the Twitter announcement, the firm that built the Cardano platform, IOHK, called the partnership, “A huge step in continuing both companies’ mission to bring decentralized finance to the masses.”
The Goguen roll-out, which is expected to be completed by Feb. 2021, allows decentralized applications to be built on the network and ushers in the integration of DeFi projects to Cardano’s ecosystem. IOHK CEO Charles Hoskinson said the introduction of apps like Bondly onto the platform will allow, “DeFi to live up to its true potential, ultimately scaling to completely replace the global digital financial system.”
As the upgrade ramps up, Bondly will transition its cryptocurrency BONDLY from Polkadot onto Cardano, in addition to the company’s two core products — over the counter trading platform BSwap, and e-commerce platform BONDProtect, which provides decentralized escrow and buyer protection.
Unlike Ethereum where ETH transactions are given more importance than those made with ERC-20 tokens, the Goguen update will not prioritize Cardano transactions over other tokens issued on the platform. This provides better performance for non-native tokens, which will inherit all security and smart contract features of Cardano’s native token ADA.
Following the full implementation of Cardano’s Goguen upgrade, the platform’s Marlowe Project will be initiated. The initiative will enable peer-to-peer loans and contracts for difference (CFDs) directly on Cardano. Platform users will be able to launch ready-made templates of DeFi contracts and digital assets, transferring the terms of the contracts on the platform.
Earlier this week, the company announced another DeFi project, Liqwid, as a potential candidate to receive $250,000 in ADA funding as part of its Project Catalyst.
Hoskinson has always had grand ambitions for Cardano. In July, 2020, he suggested that Cardano would become a leader in the DeFi sector. Six months earlier, the IOHK CEO predicted in a YouTube AMA that Cardano will replace Bitcoin as the number one cryptocurrency by the end of the year. That hasn’t happened yet … but there’s still three weeks to go.