Bitcoin Defi has taken a historical step forward – on Cardano. Cardino’s founder, Cardano, announced on X (previously on Twitter) that the first Bitco DEFI protocol that was built for Cardano is now living. With his words: “Welcome to the first Bitco DEFI Protocol to Cardano.”
This protocol is called cardinalAnd it offers a completely new way to wrap and use Bitcoin in Defer-without relying on the guardian or central federations. Cardano’s Cto, Romain Pellerin, Technology has collapsed behind On a detailed topic, he explains how the cross -chain bridge works and why it matters.
A new way to use Bitcoin in Defi
Cardinal protocol allows users Wrap any BTC UTXO And its use via an increasing number of Defi -lending, preparedness, borrowing, commercial decrees, or even use as a guarantee.
This is not the usual Bitcoin solution. There is no reliable guardian with your coins. Instead, the cardinal uses MULTISIG based on Musig2 Governor and Bitcoin HTLCS (Timelock HTLCS contracts) along with Kardano smart contracts To lock Bitcoin safely and version of cards wrapped on Cardano.
According to Pellerin, users can recover BTC at any time using a fraud -resistant exit process. The wrapped version of the Bitcoin-whether it is used as a code or NFT-always 1: 1 and is fully supported.
Why this matters
Cardinal turns the model WBTC model. Instead of giving up the custody of the union, Bitcoin remains closed on the chain using safe Multisigs. The assets wrapped on Cardano live (or any other smart contract chain) and can be used in Defi while the original remains not touched.
Pellerin explained that this removes common risks such as Rehypothecation The third party failed. He also indicated that this is The first time you can move the cross It still keeps their origin.
This means that Bitcoin Nfts can now enter Defi – used for borrowing, lending, trading or even planting – without losing their original identity.
A bridge that works completely
This is not just a white experience or a test. The team behind the cardinal completed a comprehensive cover and a full flow through Bitcoin and Cardano Mainnets. You can see the full date of treatment – lock, mint, burning and demand – in the common transactions schedule along with the advertisement.
The process begins on Bitcoin with a lock treatment, followed by the transition on Cardano, and finally ends with a burn and unlike the original BTC recovery. everything Confidence with confidence and verification On the series.
Why Kardano?
Billerin said that Carano is suitable for this protocol because of EUTXO FormWhich is closely proportional to the private bitcoin structure. Cardano also offers Low feesstrong Smart contract controlsAnd NFT supportIt makes it ideal for managing assets wrapped like orders.
However, Cardinal is Agenostic series. Technology can be extended to other Blockchains like Ethereum, Solana and Avalanche in the future.
What can bitcoin do with cardinal?
Thanks to Cardinal, Bitcoin holders can now use their origins through the Defi Cardano Scene. Some early integration operations include:
This opens a real benefit for Bitcoin holders without giving up the ownership of their assets.
What next?
Cardinal is still early, but it already works. The team now wants to expand the access and capabilities of the protocol. According to the road map, future improvements include:
- Customers lighter
- ZK systems resistant to improve fraud resistance
- Better wallet integration
- Support for more types of assets and liquidity tools
Cardinal is a bitcoin protocol wrapped. It is also A standard and safe bridge This gives Bitcoin Defi power without compromising confidence. With the full support of NFTS, agriculture, conjunction, and even auctions, this can be a positive development not only for Cardano – but for Bitcoin Defi as a whole.
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