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Earlier this year, Cardano launched a smart contract functionality, positioning itself as a promising alternative for DeFi projects that have been looking for a cheaper, faster, and more scalable alternative to Ethereum. 

A myriad of promising DeFi projects are already being developed on Cardano. Ardana is one such project that is spearheading the efforts to unlock DeFi primitives for the Cardano community. The Ardana team is not only developing Cardano’s first all-in-one stablecoin hub and asset-backed decentralized stablecoin protocol but is also expanding the budding DeFi ecosystem on Cardano through a series of partnerships with other emerging DeFi projects atop the network.

Continuing on its mission to bootstrap and maintain DeFi economy on the Cardano blockchain, Ardana has announced a new long-term partnership with Cardano-based yield aggregator Optim Finance. Both platforms will work hand-in-hand to unlock passive revenue streams and capital efficiency for the broader Cardano community.

Both Ardana and Optim Finance teams share the common vision of expanding Cardano’s presence in the DeFi market. As such, both teams will work together on a number of products and integrations to offer seamless interoperability and user experience when both protocols go live on the mainnet.

Unlocking Diverse Yield Opportunities For Cardano Users

Yield farming, the process of investing across several protocols to maximize the returns from owned crypto (usually governance tokens), is among the several passive revenue streams offered through DeFi. 

However, shuffling through the growing list of protocols to identify the best opportunities is tedious for users. This is where yield aggregators come into the picture. As the name suggests, yield aggregators gather the rate of returns offered by multiple DeFi platforms and provide them to users from a single intuitive interface. They make yield farming easier to manage while at the same time helping users optimize their investments through custom risk management strategies.

In this context, Optim Finance is the leading yield aggregator for the Cardano DeFi ecosystem. The platform offers a range of products like automated vaults for easy storage, deposits, and withdrawals, as well as innovative features like auto-management of decentralized exchange (DEX) liquidity pool positions and automatic shifting of assets between lenders. On top of it, Optim also offers optimized staking to ensure that staked ADA tokens are best utilized to generate rewards while simultaneously building positions across the Cardano ecosystem.

All of Optim’s offerings are directly connected to Cardano’s native ADA token. Meanwhile, Ardana’s stablecoin is verifiably backed by an excess of on-chain collateral, enabling users to take advantage of their ADA and other Cardano-native assets. At the same time, Ardana’s DEX Danaswap, allows for highly capital efficient swaps with low fees, minimal slippage, and low-risk yield opportunities for liquidity providers.

Through the inclusion of Danaswap’s features, Optim Finance’s automated vaults will utilize the Ardana ecosystem for low friction, native, stable asset trading on the Cardano network. By leveraging Ardana’s feature of collateralizing stablecoins with Cardano-native assets, Optim can offer high generation yield capabilities for its users via in-demand and high yield stable assets. Furthermore, Ardana will perform the function of an intermediary that can both generate et swap a variety of stable assets, enabling both Optim and Ardana users to make lower-risk investments by drastically reducing the risk associated with impermanent losses.

Most importantly, all of Optim’s liquidity provider strategies that use the Ardana protocol will also benefit from the Ardana Rewards Enhancement Module (AREM). By staking their LP tokens in AREM, users will yield DANA (Ardana’s native token) rewards as well as exDANA tokens, which will generate more DANA tokens. As a result, several features across both Optim and Ardana will converge over time, further joining both communities in terms of governance and voting power.

Source: coingape.com

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