Since the implementation of smart contracts functionality, decentralized finance (DeFi) has been a vital addition to the Cardano network.
Input Output Global (IOG), the firm behind the development of Cardano (ADA), and developers alike have been working to bring their DeFi solutions to the ecosystem since the Alonzo hard fork combinator was successfully implemented.
However, Cardano will have to work harder to play catch-up with other networks that already have these capabilities, such as Ethereum, Solana, among others.
For this reason, EMURGO, the commercial arm of Cardano Foundation, announced an important plan that is targeted at bolstering the future of DeFi on the fast-growing network.
A $100 million investment has been allocated to boost the growth and development of decentralized finance (DeFi) platform on the Cardano blockchain.
The new development was shared via the official Twitter handle of EMURGO.
Quoting the CEO Ken Kodama’s statement, the tweet says, “EMURGO to invest $100M in Cardano ecosystem to accelerate DeFi, NFT solutions and blockchain education!”
📣Just announced 🎉 EMURGO to invest $100M in @Cardano ecosystem to accelerate #DeFi, #NFT solutions and #blockchain education! – EMURGO CEO, @KenKodama_Biz @emurgo_io#CardanoSummit2021 $ADA pic.twitter.com/Gx4fbw556x
— EMURGO (@emurgo_io) September 26, 2021
Cardano Wants To Lead in the DeFi Space
The investment is meant to be channeled towards the promotion of the network’s capabilities to developers and users.
Although non-fungible tokens (NFTs) are now live on the blockchain since the Alonzo mainnet launch, DeFi is taking a long time as developers need to test their protocols before it’s launched for users for the safety of their funds.
DeFi on the Cardano network is expected to bring juicy use cases such as lending and borrowing, yield farming, among others to users. These will be built on smart contracts deployed on the Cardano network.
The huge investment is meant to build a strong root for Cardano in the fast-growing DeFi market. It will also enable the blockchain to compete, in the space, with other chains such as Ethereum, Algorand, Solana, and others.