To perform these operations, the tokenized Bitcoin version in Cardano is used.
The Defi ecosystem in Cardano shows advances, although it is lower compared to other networks.
The Strike Finance platform launched Bitcoin perpetual trading (BTC) on the Cardano Network, allowing operators to open long or short positions with leverage directly on-chain.
This decentralized finance protocol (Defi) It offers instruments such as perpetual future, options and operates without custody. Users deposit the native cryptocurrency of the network, ADA, as a guarantee.
Traders can now access to positions with up to 20 times of leverage in Bitcoin, which facilitates speculation in prices without expiration dates (and also increases the possibility of losses and liquidations).
Perpetual trading represents contracts of derivatives that do not expire, unlike traditional futures. Participants pay or receive periodic financing to maintain the position aligned with the spot price of the underlying asset. In this case, Strike Finance enables these operations in Cardano for users to manage risks or look for profitsall backed by liquidity in decentralized Pools.
In this particular case, operations use the tokenized Bitcoin version in Cardano, which replicates the price of the original asset. This representation allows to interact with native bitcoin without leaving the cardano ecosystemthus integrating external liquidity in local defi protocols.
With respect to specific commissions and conditions, the Exchange establishes That the initial cost charged when opening an operation is equivalent to 0.35% of the total size of the position, while the maximum exposure limit allowed per operation is a maximum of $ 50,000.
Although the defi ecosystem in Cardano advances with initiatives such as this, which introduce advanced tools for traders, a metric such as the total blocked value (TVL) that measures the capital deposited in Defi protocols, As soon as it reaches 313 million dollars, which positions Cardano in 25 global positionwidely surpassed by networks like Ethereum with a TVL of 83,000 million of dollars.
Consequently, Cardano’s defi ecosystem remains small compared to other networks, which has generated intense community debates.
As cryptootics reported, users criticize that the network is limited (mostly) to holdear and staking, and question what Cardano offers to attract real activity beyond that.
Others indicate complications in the Staking, such as the need to monitor pools to verify their activity, since it is not configured once and forgets.
In addition, Ada does not work well as a value reserve, given its high volatility and the loss of much of its value from the 2021 historical maximum, which reinforces doubts about its practical utility.