DeFi Landscape Expansion: Bidao's Trustless Metastable Coin BAI To Be Issued on the Elrond Mainnet, Collateralized by eGold & Other Cryptocurrencies
We’re excited to announce that we’re working with Bidao to make eGold usable as collateral for issuing the multi-asset backed stable coin BAI, which will also be issued on the Elrond mainnet. Bidao is building a multi-chain DeFi system that uses different assets as collateral to issue the trustless BAI stable coin.
The collaboration will initially focus on enabling the creation of eGold-based CDPs for issuing BAI and enabling BAI minting as an ESDT token on the Elrond mainnet. The mid-term goal is to explore the use of Elrond’s unique smart contract properties and token standard in the Bidao ecosystem.
“Trustless meta-stable coins are a perfect day-to-day complement to the eGold’s long-term store of value properties. We’re excited to work with Bidao to enable new cross-chain DeFi opportunities for Elrond holders” said Beniamin Mincu, Elrond CEO.
Bidao is building a Layer-2 DeFi solution that will integrate with multiple different chains. The native assets of the different chains can be locked into Collateralized Debt Positions (CDPs) to issue BAI, a trustless meta-stable coin that is algorithmically pegged to the USD. The BAI stablecoin can be used for any kind of transactions and DeFi usecases.
“The interesting economic model behind the Elrond ecosystem positions eGold as a viable long-term hold, which makes it an excellent asset to issue our trustless stable coin against.” said Bastian Aigner, Bidao CEO.
The collaboration is important for the Elrond ecosystem as it enables eGold holders to participate in cross-chain DeFi opportunities while simultaneously holding onto their preferred asset, and brings an additional stable coin on our blockchain. Furthermore, the mid-term collaboration with Bidao can further mean additional use-cases deployed on the Elrond mainnet.
Elrond is a new blockchain architecture, designed from scratch to bring a 1000-fold cumulative improvement in throughput and execution speed. To achieve this, Elrond introduces two key innovations: a novel Adaptive State Sharding mechanism, and a Secure Proof of Stake (PoS) algorithm, enabling linear scalability with a fast, efficient, and secure consensus mechanism. Thus, Elrond can process upwards of 10,000 transactions per second (TPS), with 5-second latency, and negligible cost, attempting to become the backbone of a permissionless, borderless, globally accessible internet economy.
The Bidao Cryptocurrency (BID) utilizes a completely decentralized proof-of-stake Blockchain with an additional collateral-backed value token which is 100% stable in value quite in contrast to for example Bitcoin, Binance Coin or Ethereum which experience huge fluctuation. Bidao is integrating with many different Blockchains like Tron, Bitcoin and Ethereum. This way Bidao becomes the one-stop-shop for Decentralized Finance (Defi) applications.