The IOST is now accepted as a collateral asset on Bidao focused on DeFi
The decentralized and blockchain-agnostic Byzantine-Fault-Tolerant (dBFT) delegated platform, Bidao, now supports IOST as a collateral asset on its ecosystem dedicated to decentralized finance (DeFi) as a by a Way post shared on July 31.
With this announcement, it means that IOST coins can be locked in secured debt positions (CDP) to generate the network stable coin, BAI.
IOST focuses on DeFi in H2 2020
Statistics reveal that over $ 4 billion worth of ETH is blocked by various DeFi apps in Ethereum alone.
Capitalizing on this development – and perhaps optimistic about open finance projections, the IOST team recently updated their roadmap. Their goal in the second half of 2020 will be to partner with DeFi startups who will then launch their dApps on the high performance public blockchain.
Unlike Ethereum, the Blockchain IOST is highly scalable, benefiting from a single infrastructure that supports a suite of Decentralized Identity (DID) and data sharing protocols. This syncs up well with Bidao looking to create a one-stop-shop for DeFi by integrating with different blockchains, including Tron and now IOST.
The team plans to support Ethereum, EOS, and Tezos in the future, as their white paper. The Bidao settlement layer is based on the Binance Chain and as such its assets can interact with the assets already supported in the Binance Chain.
How does the IOST work in Bidao
To use IOST as collateral, the part is first locked in a CDP. In return, an appropriate amount of BAI Stable Coins is generated to be freely used by the creator of the CDP. BAI is one of the two tokens of the Bidao ecosystem.
The governance token, BID, can be staked with returns as part of the network security protection mechanism. On the other hand, BAI is an algorithmic stablecoin backed 1: 1 against the USD.
To reverse the process and regain access to locked IOST coins, the creator of the CDP must repay the correct amount of BAI to the ecosystem via a simple call function.
Recent IOST partnerships
As previously stated, the IOST is determined and continues to fulfill its commitments. Despite various obstacles caused mainly by the COVID-19 pandemic in the first half of 2020, the team managed to overcome the challenges resoundingly and achieve their goals.
The partnership with Bidao is part of their plans explore and integrate at least three DeFi applications by September 2020. While working on DeFi, they will also be working on implementing and optimizing their on-chain governance mechanism.
IOST is making inroads into the budding DeFi space.
July 22, BTCManager also announcement its partnership with ProDeFi. Commenting, its co-founder, Terrence Wang, said the two parties “will mutually benefit from community expansion, product development, technical support and marketing resources.”
Like BTCMANAGER? Tip us!
Our Bitcoin address: 3AbQrAyRsdM5NX5BQh8qWYePEpGjCYLCy4