The Importance of Kadena’s Recent Collaborations
Kadena has been working non-stop on making sure it is the standard smart contract platform. It has recently made exciting collaborations with other up-and-coming projects. Most notably the recent collaboration with CoinMetro brought us Kadena staking and the first KDA/USD pair. It’s important to remember those first moments because they can be the most definitive.
Kadena and CoinMetro
CoinMetro gives us a chance to earn up to 5% rewards for holding Kadena on the exchange in their native XCM exchange token. CoinMetro confirmed they are working on increasing the rewards and paying them out in KDA. The interface is delightful and transacting Kadena is fast. CoinMetro recently started taking US customers in January 2021, so there’s an opportunity for both Kadena and CoinMetro to gain exposure. It would be interesting to see both parties collaborate further with each other as they could both help meet each other’s goals. CoinMetro aims to become a one-stop hub of centralized finance (CEFI) while Kadena becomes a one-stop hub of decentralized finance (DEFI), both can co-exist in harmony.
Kadena’s Chainweb currently handles 480,000 transactions per second, it can be scaled up even more without compromising security or decentralization. It would be an ideal settlement layer for the Central Security Depository (CSD) and Multilateral Trading Facility (MFT) endeavors CoinMetro is pursuing.
A CSD guarantees that a buyer receives the purchased assets and the seller receives the promised payment. An MFT license would give CoinMetro the green light to sell tokenized securities (crypto options, bonds, futures). According to the World Economic Forum by 2025 10% of Global GDP will be tokenized.
The problem with CSD’s and MFT’s is they are subject to the T+2 settlement period which means it takes 2 days for transactions to fully settle. Kadena’s Chainweb would make this a matter of seconds. CoinMetro is a leader in exchange transparency it would be great to see it settle all of its trades on Chainweb to ensure the exchange does not counter-trade its users. An up-and-coming American crypto exchange, Beaxxy, did this recently by integrating itself with Dragonchain. It could be the next step in centralized finance transparency. Binance was just probed to see if U.S customers were trading on the exchange so there is an imminent need for this kind of transparency.
“Every business has cost centers, which support the money-making element of a business, but take away from the overall profits and efficiency of the enterprise. Common bank cost centers include anti-money-laundering compliance (AML) or know-your-customer work (KYC) Kadena’s hybrid blockchain can unlock these cost centers and transform them into revenue centers.” -Will Martino- Co-Founder of Kadena.
Kadena and Terra
Another collaboration that shows the convergence of CEFI and DEFI is Kadena’s recent partnership with Terra. Terra’s Chai wallet has been the fastest growing e-wallet in Korea. The Kadena Chain Relay bridge will allow the Terra ecosystem to bridge any of its protocols onto the Kadena network. The most important part of this collaboration is that not long after its Kadena collaboration went public, Terra revealed it will bring 24-hour trading to synthetic versions of stocks like APPL and TSLA through its Mirror Protocol.
There is nothing that can stop Mirror Protocol or Terra’s multiple stable coins from being ported over to Kadena. Kadenaswap will offer decentralized native bridges at launch. It is inherently designed to connect to other chains.
Kadena and Tokensoft
As Kadenaswap enters its beta with Bountyswap it was recently announced that Tokensoft Wrapped will be the first to bring BTC and ETH to the Kadena blockchain with kETH and kBTC. At launch, all of BTC’s and ETH’s value will be live on Kadenaswap and as recently revealed through a Telegram AMA there will be opportunities to provide liquidity for these wrapped assets.
Tokensoft ensures its custody assets are secure, efficient, auditable, and insured through Anchorage bank. Kadena and Tokensoft jointly developed the KIP-0009 standard improving on an ETH standard that allows the transfer of fungible tokens. Interacting with these assets will be quick and safe. The CEO Of Tokensoft, Mason Borda, praised Chainweb saying “it can be a high-throughput settlement layer for wrapped assets.” This shows blockchain company executives are becoming aware of Kadena’s potential to be a hub between blockchains.
Bountyswap and beyond
Times are changing fast and keeping up with every new protocol can be confusing. Kadenaswap is on track to be the one DEX to rule them all, making it simple and even faster to interact with. At launch, it will offer kBTC, kETH, and Terra protocols. Further work is being done with Polkadot/Kusama, Cosmos, and Celo to bring their value over to Kadena. The Kadena Chain Relay bridge will make it possible for every fungible ERC-20 token to be ported over.
It’s no mistake that in the top five most valuable ERC-20 tokens we find CEFI (BNB, USDC, USDT) and DEFI (LINK and UNI) existing in harmony, they are converging. Cryptocurrency is revolutionizing finance before our eyes and Chainweb is the ideal blockchain to keep track of it all. Bountyswap is live and liquidity is being gathered, Kadenaswap is inevitable.