Following the release of smart contracts capability, decentralized finance (DeFi) has become an increasingly important addition to the Cardano network. Since the Alonzo hard fork, developers have been working to bring their DeFi solutions to the ecosystem. Emurgo to invest $100 million in Cardano to accelerate the DeFi adoption. However, with decentralized finance already underway on blockchains such as Ethereum and Solana, Cardano has had to play catch-up.
This is why EMURGO’s recent announcement has significant implications for the future of DeFi on the network. EMURGO, the commercial arm of the Cardano Foundation, has taken steps to aid in the expansion of decentralized finance solutions on the ecosystem. A $100 million investment to be made into the DeFi ecosystem to promote the platform’s development and growth.
Pushing DeFi To The Forefront
Although, NFTs are now available on the blockchain, decentralized finance is taking its time developers must build and test their protocols before making them available to users. Consequential , users’ funds in said protocols are secure.
DeFi on the network will provide lending and borrowing, yield farming, and other services to ecosystem users through smart contracts deployed on the Cardano network. The investment should help the blockchain carve out a niche in the growing decentralised finance market. It can also compete with the big dogs like Ethereum, Solana, and Algorand.
EMURGO Bolsters Cardano-Focused Projects
EMURGO announced a number of investments in Cardano-focused projects around the world at the recently concluded Cardano Summit. CEO Ken Kodama revealed that the company had made strategic investments in ecosystem projects. EMURGO took part in the seed investment rounds for these projects. To accelerate blockchain development.
Adanian, an African-based tech incubator focused on Cardano-based startups, is one of them. EMURGO’s investments benefited Milkomeda, a dcSpark side chain project that connects Cardano and other Layer 1 blockchain protocols. Emurgo to invest $100 million in Cardano to accelerate the DeFi adoption. And, ADAVERSE also focused on incurring African startups developing their offerings on the ecosystem.