Listing Cardano (ADA) as Collateral on Paribus

Proposals
1

Proposal: Listing Cardano (ADA) as Collateral on Paribus

Dear Paribus Community,

As an active member of the Paribus community and a dedicated investor, I would like to propose the listing of Cardano (ADA) as a collateral option on our platform. Given Paribus’ strong ties to the Cardano ecosystem, I believe that adding ADA as collateral option, aligns with our platform’s growth strategy and offers significant benefits to both Paribus and its users.

Background on Cardano (ADA)

Cardano is a third-generation blockchain platform that aims to provide a more secure and scalable infrastructure for decentralized applications (dApps) and smart contracts. Launched in 2017 by IOHK, Cardano has quickly become one of the most prominent blockchain networks, known for its scientific approach to development and its strong emphasis on security, sustainability, and interoperability.

With a robust community, a growing number of dApps, and a focus on research-driven development, Cardano has established itself as a leading player in the blockchain space. The native cryptocurrency, ADA, is used for transactions, staking, and governance within the Cardano ecosystem.

Why Cardano (ADA) Should Be Listed as Collateral

  1. Strengthening Our Ties to Cardano:
  • While Paribus initially launched on Ethereum, we have since embraced the Cardano ecosystem due to its scalability, security, and lower transaction costs.
  • By supporting ADA, we reinforce our commitment to the Cardano community and demonstrate our dedication to the long-term success of the ecosystem.
  1. Expanding Market Offerings:
  • Cardano is one of the top cryptocurrencies by market capitalization, with a large and active user base. Listing ADA as collateral will tap into this established market, providing Paribus users with a stable and widely recognized asset.
  • The addition of ADA as collateral will diversify our platform’s offerings, catering to users who prioritize security, scalability, and sustainability in their investments.
  1. Attracting a Broader User Base:
  • Cardano’s global community is passionate and engaged, with a strong presence in regions such as Africa, Europe, and Asia. Listing ADA as collateral will attract a new demographic of users who are invested in the Cardano ecosystem.
  • As Cardano continues to grow and evolve, Paribus can position itself as a key player in the Cardano DeFi space, attracting users who are looking for innovative lending and borrowing solutions.
  1. Leveraging Cardano’s Unique Features:
  • Cardano’s Proof-of-Stake (PoS) consensus mechanism offers energy efficiency and security, making ADA a low-risk asset for collateralization.
  • With the ongoing development of smart contracts and the recent launch of Hydra, Cardano’s Layer 2 scaling solution, the network’s capabilities are further enhanced, making ADA an even more attractive collateral option.

Global Data for Cardano (ADA) (CoinGecko)

  • Market Cap: ~$9.5 billion USD
  • Fully Diluted Valuation: ~$13 billion USD
  • 24-Hour Trading Volume: ~$300 million USD
  • Circulating Supply: ~35 billion ADA
  • Total Supply: ~45 billion ADA
  • Max Supply: 45 billion ADA

Conclusion

Listing Cardano (ADA) as collateral on Paribus is a strategic move that aligns with our platform’s growth strategy and values. By embracing ADA, we can strengthen our ties to the Cardano ecosystem, expand our market offerings, and attract a broader user base. Additionally, Cardano’s unique features and strong community support make it an ideal candidate for collateralization, offering stability and security to both depositors and borrowers.

I believe that this proposal will contribute to Paribus’ growth and solidify our position as a leader in the DeFi space, particularly within the Cardano ecosystem.

I invite the Paribus community to review this proposal and share their insights before moving to on-chain voting through governance.

Sincerely,
websurfer

1 Like
2

I think integrating with Cardano might not be the best option right now. Our protocol is designed to work within the EVM ecosystem. Attempting to integrate with Cardano could introduce development challenges and may not align with our current strategic goals. For now, it makes more sense to focus on enhancing our existing infrastructure and partnerships within the EVM ecosystem, such as expanding EVM assets or adding more EVM networks like Base. In the future, if demand grows, liquidity improves, and our team has more resources and revenue, exploring Cardano could become a viable option.

3

Strategic Case for Cardano Integration

While focusing on the EVM ecosystem has its merits, integrating with Cardano presents a strategic opportunity that aligns with the long-term vision of blockchain interoperability and scalability. This document outlines the key advantages and addresses potential concerns.

Key Advantages

1. Future-Proofing

  • The blockchain landscape is evolving towards multi-chain solutions
  • Early integration positions us at the forefront of this trend
  • Avoids playing catch-up later in a competitive market

2. Technological Edge

  • Cardano’s architecture offers:
    • Superior scalability
    • Enhanced energy efficiency
  • Aligns with our goal of providing efficient and sustainable DeFi solutions

3. Expanded Market

  • Cardano’s growing ecosystem represents an untapped market
  • Early integration provides:
    • First-mover advantage
    • Potential for significant user acquisition
    • Opportunities for liquidity growth

4. EVM Compatibility

  • Cardano’s EVM sidechain allows:
    • Leveraging our existing EVM expertise
    • Expansion into the Cardano ecosystem
  • Minimizes development challenges while maximizing benefits

5. Risk Mitigation

  • Diversifying blockchain integrations:
    • Reduces dependence on a single ecosystem
    • Enhances our protocol’s resilience to ecosystem-specific risks

6. Innovation Opportunity

  • Cardano’s unique features (e.g., formal verification approach) enable:
    • Development of innovative DeFi products
    • Potential to set us apart in the market

7. Long-term Vision

  • Aligns with a more inclusive and interoperable DeFi landscape
  • Positions us for future growth beyond immediate revenue considerations

Addressing Concerns

1. Development Challenges

  • Solution: Start with Cardano’s EVM sidechain
    • Minimizes learning curve
    • Leverages existing expertise

2. Resource Allocation

  • Approach: Adopt a phased integration
    • Start with a small, dedicated team for Cardano
    • Maintain focus on EVM enhancements

3. User Impact

  • Strategy: Parallel development
    • Ensures no disruption to existing EVM users
    • Opens new opportunities simultaneously

Conclusion

Integrating with Cardano is not just about current demand or immediate revenue. It’s a strategic move that:

  • Positions us for the future of DeFi
  • Expands our technological capabilities
  • Opens up new markets

The potential long-term benefits outweigh the short-term challenges, making Cardano integration a valuable investment in our protocol’s future.

1 Like
4

Thanks for your proposition and I agree we’ll need to go this way but I feel that everything is slow right now since the MVP because of the development of new features. I hope we’ll get new chains, collaterals faster in the future, starting with cardano.