Over the last couple of months, the Cardano ecosystem has come alive. We have started to see projects of all types and scale being built on the chain; decentralized exchanges, paid subscription service managers, even telecommunications companies, but there is one element missing from the group- and its an important one. With all the attention being placed towards flashy projects, people have forgotten about stablecoins.
Don't worry, I'm not here to talk about how stablecoins work (thank the creator). More so to point out, stable coins, as well as the organizations behind them, are often taken for granted by people in the world of crypto -despite them being a necessary coin on the blockchain. Without them, there is no way to stably store or transfer our assets on the blockchain. Think about where crypto as a whole would be if it weren't for the likes of DAI, USDT, or USDC or the organizations behind them.
Today id like to point to a project that I believe leads the cardano space in this niche, . Through a combination of partnerships with already established payment rails like COTI, unique features like a decentralized exchange built specifically for stablecoins, and a governance structure with an accompanying token similar to other successful projects, Ardana seems to be a top contender to be the dominant medium to transfer of USD, EUR, JPY or others onto, around, or off the chain stably.
Ardana is a decentralized stablecoin liquidity protocol, stablecoin exchange, and issuer of dUSD; a fiat-pegged stablecoin that is asset-backed. Users can deposit crypto assets on the platform to receive loans of dUSD and leverage their assets.
click me to read?
?the whitepaper
All dUSD is backed by an excess of assets on-chain that are deposited into the protocols Ardana vault- leading it to be quite transparent in the process. The stablecoin dex (love it already) allows users to swap between stablecoins with minimal slippage, and the accompanying DANA Governance token can be staked to earn platform profits in the form of ADA and exDANA.
Comparable projects
Ardana operates much in the same way MakerDAO and DAI do on the ETH network, and just like MakerDAO's MKR governance token, Ardana has it's own governance token for its decentralized ecosystem; DANA. The token allows users to vote on proposals, upgrades, and changes to the decentralized protocols fee structure/rewards rate.
Dana has a total supply just shy of the MKR token at 100,000,000, putting it well within the realm of possibilities that DANA could reach a similar price if the protocol does well and is adopted by the community as one of the preferred stable assets.
Multiple ways to earn
While voting to make changes to the protocol is nifty, it doesn't pay the bills. Fortunately, there are a multitude of ways to earn within the Ardana ecosystem while holding DANA and waiting for its price to rise.
Users automatically earn ADA rewards for holding DANA from the fees on both the stablecoin protocol and from the decentralized swap, users can stake DANA for exDANA rewards which are used to earn stablecoins, and users can provide liquidity to stablecoin pools and use LP tokens to earn more DANA.
Stablecoin Dex
Aside from being a way to earn some passive income while staking DANA, the stablecoin Dex has some unique features that make it a very useful tool for pretty much everyone using the blockchain. Stablecoins are not universally accepted across all platforms, and being able to swap different types of stablecoins for cheap is not something were accustomed to on most networks or exchanges. Ardana fixes this with It's decentralized liquidity pool of multiple Cardano stable assets (hopefully ETH based in the future also) and removes the headache and expensive fees of swapping stablecoins on a traditional exchange.
Not only can you swap from one stablecoin to another cheaply, but you can swap for multiple types of stablecoins in a single transaction. Users have the ability to allocate portions of a transaction to multiple different coins at the same time, allowing the user to forgo multiple charges to swap for the needed medium for the platforms you're using. Another thing to think about is how eventually dEUR, and dJPY will be added, Turing the dex into a decentralized fiat exchange of sorts ??
Conclusion
Ardana is not the flashiest of projects building on Cardano, but it is these types of projects that we tend to overlook. Ardana offers a necessary service on the Cardano blockchain that has quite a few features on its platforms that make it attractive to use their services to swap stablecoins; including cost and efficiency over the centralized competition. It has a partnership with one of the most recognizable fiat gateways and payment rails currently building on Cardano, potentially opening up access to its stablecoin to a much broader market than just crypto users, and a total supply that comes in just shy of it's relative on ETH.
As with all investments, I thoroughly research them, and I invest at my own risk. I caution all others that they must do their own research as well, so this is by no means a suggestion to ape into any coin without doing your own research and understanding the risks. Please be careful while trading. Use caution with how much money you put into small cap coins, and never put in what you cant afford to lose ??.
As always, Thank you to the 336 ?? people that follow me, continue to read my posts, and support me ??
