DeFi and Cosmos

Decentralized Finance (DeFi) is a new way of providing banking services through decentralized cryptocurrency systems and smart contracts, primarily using the Ethereum network.

But a parallel DeFi ecosystem is quietly rising up on Cosmos. And ndau is ready to be part of it.

DeFi Opportunities – Today and Tomorrow

Current DeFi opportunities are primarily based on ERC-20 tokens and the Ethereum network. There’s a great deal of rapid innovation, but there are also serious challenges such as increasing gas prices and transaction delays that are ultimately throttling both usage and growth.

ndau is built on a custom tailored high-performance blockchain using Tendermint, running live on mainnet since 2019 and scalable for retail transactions with near instant transaction finality. Since ndau is not dependent on the Ethereum network, things like uncontrollable gas prices and long transaction delays are not an issue. And while ndau is not an ERC-20 token, it can still be easily integrated into an Ethereum-based DeFi product as a wrapped token. ndau’s adaptive nature and goal of buoyancy makes it ideal for use as escrow or collateral in an Ethereum smart contract. But a parallel DeFi ecosystem is quietly rising up on Cosmos. And ndau is ready to be part of it.

Building Blocks for a New Decentralized Financial Sector

While Ethereum has an existing robust DeFi ecosystem, Cosmos has quietly amassed the critical infrastructure necessary to build a new one. This new ecosystem presents opportunities for investors seeking the next hot DeFi opportunity or users seeking shelter from Ethereum’s high fees and transaction delays.

Like Cosmos, ndau’s custom blockchain is also built using Tendermint, meaning any project built on the Cosmos network can integrate with ndau. Which means ndau is ready to be an adaptive digital currency building block in this new Cosmos-based DeFi ecosystem.

Key Building Blocks for a Decentralized Financial Sector

While Ethereum has a robust DeFi ecosystem, Cosmos has quietly amassed the critical infrastructure necessary to build one

We took the liberty of adding a new section called “Adaptive Digital Currencies” to Messari’s excellent infographic. We also added Ampleforth as an Ethereum-based building block, since we think it’s a fascinating adaptive digital currency. But there are key differences between Ampleforth and ndau, as can be seen in the infographic below.
Check out Messari Research’s full report to learn more about this emerging ecosystem, or follow their research thread on Twitter for an overview.

ndau vs Ampleforth Comparison