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 network’s 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 network’s 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 the ecosystem via a simple call function.
IOST’s Recent Partnerships
As previously reported, IOST is determined and continues to fulfill its commitments. Despite various obstacles caused primarily by the COVID-19 pandemic in H1 2020, the team managed to resoundingly overcome challenges and met their targets.
The partnership with Bidao is part of their plans to explore and onboard at least three DeFi applications by September 2020. While they work on DeFi, they will also work on implementing and optimizing their on-chain governance mechanism.
IOST is making inroads in the budding DeFi space.
On July 22, BTCManager also announced its partnership with ProDeFi. Commenting, its co-founder, Terrence Wang, said the two parties will “mutually benefit each other with community expansion, product development, technical support, and marketing resources.”