IOST Now Accepted as Collateral Asset on DeFi-Focused Bidao

Sunday 4 August 2020, 4:24 AM AEST - 3 days ago

The delegated Byzantine-Fault-Tolerant (dBFT), decentralized, and blockchain agnostic platform, Bidao, now supports IOST as a collateral asset on its decentralized finance (DeFi)-dedicated ecosystem as per a Medium post shared on July 31.

With this announcement, it means IOST coins can be locked up in Collateralized Debt Positions (CDPs) to generate the networks stable coin, BAI.

IOST Focusing on DeFi in H2 2020

Statistics reveal that over $4 billion worth of ETH is locked up by different DeFi applications in Ethereum alone.

Capitalizing on this development–and perhaps optimistic of the projections of open finance, the IOST team recently updated their roadmap. Their focus in the second half of 2020 will be partnering with DeFi startups who will then launch their dApps on the high-performance public blockchain.

Unlike Ethereum, the IOST blockchain is highly scalable, boasting of unique infrastructure that supports a suite of decentralized identity (DID) and data sharing protocols. This syncs well with Bidao which seeks to build a one-stop-shop for DeFi by integrating with different blockchains including Tron and now IOST.

The team plans to support Ethereum, EOS, and Tezos in the future as gleaned from their white paper. The Bidao settlement layer is based on the Binance Chain and as such its assets can interact with assets already supported in the Binance chain.

How IOST Works in Bidao

To use IOST as collateral, the coin is first locked up in a CDP. In return, an appropriate amount of BAI stablecoins is generated to be freely used by the CDP creator. BAI is one of the two tokens in the Bidao ecosystem.

The governance token, BID, can be staked for yields as part of the networks security protection mechanism. On the other hand, BAI is an algorithmic stablecoin backed 1:1 to the USD.

To reverse the process and regain access to locked IOST coins, the CDP creator must repay the right amount of BAI to th ...

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