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Hybrid blockchain platform Kadena is teaming up with stablecoin maker Terra with the aim of expanding its decentralized finance (DeFi) platform.
Announced on Tuesday, Kadena said it will add Terra’s luna stablecoin to its decentralized exchange (DEX) Kadenaswap, which was announced earlier in September and is expected to roll out at the end of the year. Using its hybrid blockchain as the selling point for its DeFi offering, Kadena hopes to draw businesses and users looking to get away from the congestion on Ethereum-based platforms.
- Noting how congestion on the Ethereum blockchain can prevent DeFi applications from successfully scaling, Kadena's co-founder and President Stuart Popejoy said combining Kadena's "low-gas and high-speed transactions" can not only aid adoption but will also add interoperability between coins like Terra's and blockchains like Ethereum and Polkadot.
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- According to Terra’s co-founder and CEO Do Kwon, the collaboration will mean that “Terra could process wrapped Luna transactions on Kadena’s DEX and then bridge to Ethereum,” he said in an emailed statement, adding this also expands use cases for Terra-based payments.
- Terra currently offers stablecoins backed by fiat currencies such as the U.S. dollar, South Korean won and the Phillippine peso.
- Kadena’s emailed announcement also said the first stage of moving Terra and other coins in and out from one network to another via Kadenaswap will be carried out in 2021.