Cardano (ADA) is one of the best performing assets in the top 10 cryptocurrencies by market cap and continues to strengthen the ecosystem. The DeFi sector could add some of the most popular assets in the space as the network prepares for its next hard fork combiner (HFC) event called Vasil.
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At the time of writing, ADA is trading at $0.95 and is up 2% in the last 24 hours.
ADA is down on the 4-hour chart. Source: ADAUSDT Tradingview
Cardano will soon be able to natively support Tether (USDT) and USD Coin (USDC). Charles Hoskinson, inventor of the network and CEO of Input Output Global (IOG) shares his passion for WingRiders.
Wingriders is one of the most exciting DEXs launched by Cardano and now brings stablecoins. https://t.co/Rpsl9znhyl
— Charles Hoskinson (@IOHK_Charles) April 12, 2022
WingRiders, a decentralized exchange running on Cardano, has partnered with two other projects: Flint Wallet and Milkomeda, which aim to provide a user- and developer-friendly UX to sidechains to launch these stablecoins in their mainnet currency. have entered into
According to the Medium post, Milkomeda will implement the Ethereum Virtual Machine on the Cardano sidechain. This sidechain runs using a synthetic version of ADA called Wrapped ADA (wADA).
In fact, this will allow users to connect to Ethereum using the Milkomeda sidechain and wADA as shown in the diagram below. This removes friction from the trading process of ERC-20 tokens and native Cardano tokens. WingRiders says:
Milkomeda itself is an EVM-based Cardano sidechain that supports stored ERC20 tokens for its users (e.g. stored in Flint wallets or again using Metamask). The gateway locks these ERC-20 tokens and then publishes the Cardano native equivalent of these tokens to the Cardano blockchain. This can be done through the Flint wallet.
Cardano (ADA) Integration with Bitcoin and Ethereum?
As explained by WingRiders, tokens on one side of the two chains are “pinned” by entering a smart contract because a synthetic version is issued on the other side. In the case of stablecoins, these digital assets are “pre-mined” before user requests and “pinned to the Cardano mainnet”.
In this way, users can benefit from an “easy” transaction on this network. Stablecoins are some of the most important digital assets because they function as “liquid accelerators” and can join the ecosystem with new users, new capital, and new assets like Bitcoin and Ethereum.
But the bridge has become a target for villains. Some of the biggest DeFi hacks in recent times have occurred on these platforms. So while the potential of this partnership and the performance of the ADA look great, it’s not without potential trade-offs.
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Cardano’s inventors trust the team behind the initiative. According to Hoskinson, IOG has been working with WingRiders on several projects over the years. Inventor of Cardano said:
We have been working with the team for many years. They are the people who do ledger integration for cardano and adalite. I like and respect their engineers. They also discovered vulnerabilities in Minswap and responsibly disclosed their DApps from hackers. Good people get votes.
Source of information: Edited by 0x Information in NEWSBTC. The copyright belongs to the author.