This article was first published on Komodo Platform | En
Komodo, an open-source blockchain ecosystem pioneering multi-chain architecture and atomic swap technology since 2014, announces its strategic partnership with Bidao, a decentralized finance and stablecoin system. This partnership furthers Komodo’s mission of interoperability, as it will enable Komodo’s native coin KMD to be a collateralized asset within the Bidao ecosystem through the BAI stablecoin. This partnership will include listing Bidao’s governance token, BID, on AtomicDEX, the world’s leading cross-protocol decentralized exchange (DEX).
Bidao is the only trustless stablecoin that is both blockchain-agnostic and allows for different crypto assets to be used as collateral. Although it is tied to the Binance Chain, Bidao can accommodate any blockchain network and is able to interact frictionlessly with other crypto assets. Bidao utilizes two tokens: the governance token, BID, which uses a completely decentralized proof-of-stake blockchain with an additional collateral-backed value token which is 100% stable in value, and the stablecoin BAI, which is pegged 1:1 to the US dollar.
This partnership creates a new use case for KMD holders. Bidao is building a blockchain system in which users can open Collateralized Debt Positions (CDPs) by locking KMD as collateral to generate BAI, the Bidao stablecoin. BAI limits exposure to volatility as it is anchored to the value of the US dollar through smart contracts. To unlock their KMD, users can close the CDP at any time by repaying their BAI to the system using a simple function call.
Kadan Stadelmann, CTO at Komodo, said,
“Using cryptocurrencies as collateral to receive loans is an important and fast-growing trend within the broader DeFi space. As an exciting new use case for KMD, this integration allows Komodo to expand its capabilities into the ...
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Komodo Platform | En