On 21 April 2020, TRON's CEO Justin Sun announced a partnership with the ecosystem DeFi Bidao in order to increase the adoption of TRX. From now on the TRX Token can be used as a guarantee on the platform, so is this a major partnership that could create a huge break for TRON ? Let's jump into it.
Tuesday, Justin Sun (TRON's CEO) via his Twitter account, announced a new cooperation with the Defi ecosystem of the Bidao chain. This cooperation will allow greater adoption of the TRX token to be implemented in Bidao, as stated by Justin. There, the TRX can be used as collateral asset.
DeFi Bidao uses two tokens in its ecosystem, the first is the IDB governance token and the second is the BAI Stablecoin which is anchored to the US dollar on a 1/1 basis. Through cooperation with DeFi Bidao, TRX can be used as collateral and held in a secured debt position (which are also known as the Collateralized Debt Positions or CDP). In this way, a certain amount of BAI is generated, and according to Bidao can be freely used by the user.
The use of TRX as a guarantee is quite simple. In the beginning, TRX is enclosed in the CDP. In return, an appropriate amount of BAI is generated and can be freely used by the CDP creator. To recover access to the locked TRX, BAI must be reimbursed to the system. This is done simply by a simple function call and referral from BAI to CDP. Then TRX are unlocked and can be transferred freely again by the CDP creator.
The Bidao platform is using a form of evidence of decentralized stakes. According to Bidao, the platform is also integrated with other blockchains. In addition to TRON, Bidao is integrated with Ethereum and Bitcoin. However, the platform claims to have an advantage due to its stablecoin (in this case : TRX).
DeFi Bidao uses a completely decentralized blockchain of evidence of stakes and in addition the value of TRX token guarantee its safety, whose value is stable at 100%, unlike BinanceCoin or Ethereum, for example, which experience huge variations. Furthermore TRON is experiencing an interesting growth in terms of new account (+65.000 accounts, so +1.2%) and value (+2.64% last month) :
All in all, this partnership is an important opportunity for TRON and TRX because it could facilitate the adoption of TRX to new users, and also attract those users to the platform. Today we can say that the growth potential of TRON is becoming more and more important.
