Hey, did you hear the news? Charles Hoskinson and the Cardano team have just launched Cardinal, a protocol that allows bitcoin to be used in DeFi on Cardano without any centralized wrappers like wBTC! 🚀
What is it anyway?
Cardinal is a solution that makes it possible:
✅ Pledge BTC for loans and borrowings
✅ Farm liquidity with Bitcoin
✅ Trade BTC on Cardano's decentralized exchanges
And all this without trusting the custodians (unlike the same wBTC).
How does it work?
You "wrap" BTC through wrapped UTXO technology (this is not a token, but a special mechanism for working with bitcoin in Cardano).
You get access to DeFi applications (Minswap, SundaeSwap and others).
You can transfer BTC back to your native network at any time.
Why is this cool?
Security — MuSig2 (multi-signature) is used, not centralized storage.
Decentralization — no intermediaries, only Cardano smart contracts.
Compatibility — works with Ethereum, Solana and Avalanche.
And what about the ADA price?
After the announcement, ADA's trading volume jumped to $500M, and the exchange rate rose to $0.669. Plus, Cardano is now in the Nasdaq crypto index — the institutions are also interested.
What will happen next?
The team promises:
🔸 Support for ZK-proofs (for privacy).
🔸 Improved liquidity.
🔸 Integration with new wallets.
Conclusion
If everything goes according to plan, it could seriously change the DeFi landscape and give bitcoin a new lease of life in decentralized finance.
Do you think this is a really useful innovation or just another attempt to draw attention to Cardano?
