Charles Hoskinson Just Made Bitcoin DeFi Possible on Cardano

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So, here we are, folks! Cardano, the 10th largest crypto asset (because who’s counting, right?), has decided to shake things up in the digital asset playground. Our dear founder, Charles Hoskinson, has rolled out the Cardinal Protocol, which is basically the first DeFi solution on Cardano powered by none other than Bitcoin. Yes, you heard that right! For the first time, Bitcoin can now strut its stuff on Cardano for lending, staking, and all those other fancy financial gymnastics, without needing a third-party babysitter. The crypto world is buzzing like a caffeinated squirrel, pushing ADA’s 24-hour trading volume to a whopping $500 million. Currently, it’s trading at $0.669, which is just a hair above “pocket change,” but hey, it’s also been included in the Nasdaq crypto index. Institutional interest is growing, which is code for “the suits are coming!”

Welcome to the first Bitcoin DeFi protocol developed for Cardano

— Charles Hoskinson (@IOHK_Charles) June 9, 2025

Bitcoin Enters Cardano’s DeFi Arena

Developed by InputOutput HK (because “InputOutput” sounds way cooler than “We Just Made This Up”), Cardinal allows users to put their Bitcoin to work through lending, borrowing, farming, or staking on the Cardano blockchain. This is all thanks to some wizardry called “wrapped UTXO” technology, which can be burned at any time to redeem the original Bitcoin or Ordinals. For the first time, Bitcoin holders can dive into DeFi on Cardano without having to trust those centralized platforms that feel like handing your lunch money to the school bully.

Safe, Cross-Chain, and Fully Transparent

Instead of custodians, Cardinal employs a secure MuSig2 multi-signature system, making Bitcoin transactions as safe as a cat in a sunbeam. It’s also cross-chain compatible with networks like Ethereum, Solana, and Avalanche. Cardinal uses BitVMX for off-chain verification, while Cardano smart contracts handle the on-chain logic. It’s like a well-oiled machine, if that machine were powered by a bunch of nerds in hoodies.

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Users can now frolic with popular DeFi platforms like MinswapDEX, SundaeSwap, and Fluid Tokens to lend, farm, and trade Bitcoin-backed assets. Ordinals can now be used as collateral for loans and traded on other chains without losing their identity. It’s like a family reunion where everyone remembers who they are!

More Features on the Way

Cardano’s CTO Romain Pellerin believes this is a huge step forward, but he’s not stopping there. Future upgrades may include wallet support, zero-knowledge proofs, and deeper liquidity. Because why not throw in a few more buzzwords while we’re at it?

This launch bridges the world’s biggest cryptocurrency with Cardano’s DeFi ecosystem — bringing Robert Kiyosaki’s belief that Bitcoin is “the people’s money” even closer to reality. Or at least, that’s what we’re telling ourselves while we check our wallets.

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FAQs

What is Cardano’s Cardinal Protocol?

Cardinal is Cardano’s DeFi protocol that lets users lend, borrow, or stake Bitcoin without third-party custodians. Think of it as a trust fall, but with money.

Is Cardinal Protocol compatible with other blockchains?

Yes, Cardinal supports cross-chain DeFi with Ethereum, Solana, and Avalanche through wrapped BTC assets. It’s like a crypto party where everyone is invited!

Can I use Bitcoin on Cardano’s DeFi platforms?

Yes, Cardinal enables wrapped Bitcoin use on Cardano for DeFi services like lending, farming, and staking. It’s like giving your Bitcoin a vacation on a tropical island!

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2025-06-10 08:38