Can Bidao be the winner of the Defi war?

By Senzacervello | Crypto Vagabond | 2 Oct 2020


Few days ago I run by accident into a project named Bidao. The project has been created in 2019, but only recently it came in the spotlight as their ICO just closed on September 3rd with a notable result of 18 million USD raised against the 19.2 expected. The token price was 0.01 USD per token, but to date is already pricing in between 0.03-0.04 USD per token.

WHAT IS BIDAO

According to the whitepaper, Bidao will enter the industry with the aim of creating a permission less stable coin accepting as collateral a wide number of other coins/tokens. The planned main net will be an agnostic blockchain. Does it sound complicated? Well, it can but things are easier than they seem. The concept of a stable coin is widely known everybody of us met in his journey in crypto coins like USDT, USDC, DAI and so on. They are all called “stable coins” because their price is forced to stay equal to one dollar. In these terms, Bidao does not offer any special revolution as the market offers plenty of stable coins. The true innovative point is that the stable coin of Bidao (BAI) will be multichain: in other words, collaterals could be coins or tokens developed on chains different from Ethereum, something that Compound and Makerdao do not offer. In this sense, their idea to develop an agnostic chain means to open the doors of DeFi to all the coins outside Ethereum without the need to be transformed onto something representing them on Ethereum blockchain. All of this keeping the decentralization as a huge strong point.

THE BIDAO SYSTEM

In the Bidao system you are going to find three elements.

The first is the stablecoin (BAI) we just mentioned.

The second is their governance token (BID). The price of this token will be free to float on the market and it will be possible to stake it within the official wallets. Bidao will adopt a Proof Of Stake consensus and the lucky ones who got the token during the ICO will receive a kind of super stake power for a limited time, but when elapsed they will earn as all other mortals their nice 3% APY. BID is currently available on Uniswap and Hoo.com.

The third element will be the collateral. Differently from MakerDao and Compound, the collateral could be whatever coin. At the very beginning BNB will be used as the chain adopted is the Binance one, but the planned main net will be completely agnostic.

THERE IS LIFE OUTSIDE ETHEREUM

This project is, of course, is in its infancy and it’s too early to say whether they could be a serious threat for the current lords of the decentralized finance. People at Makerdao could go on sleeping in between two pillows for now, but just the fact that an idea like this came so far shows clearly that Ethereum is not the only way to do DeFi and probably not the best Do fees ring a bell? The niche of DeFi is growing at incredible speed and what today seems a consolidated dominant position achieved, tomorrow could look like an old memory. In my opinion, the future of decentralized services, finance included, will be a game for multichain projects. Hard to believe today when the joint dominance of Bitcoin and Ethereum totals an impressive 69% of the crypto space. Nevertheless, the 31% left is constantly growing and on that terrain projects will be called to compete.

If Bidao will succeed in becoming the first one-stop-shop platform for DeFi remains to be seen, but it is a bet that could pay off a lot.

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Senzacervello
Senzacervello

Crypto enthusiast. One day fiat will be only for collectors


Crypto Vagabond
Crypto Vagabond

My life in cryptospace among blockchain games, NFT, promising projects and whatever catches my attention. In this blog I only write my own opinions and they are not financial advises for any reason. Always do your own research and never put at stake what you can't afford to lose

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