Through a strategic partnership, TRON (TRX) is now available on Bidao Chain decentralized finance (DeFi) ecosystem. Justin Sun, CEO of TRON, made the announcement recently via a tweet.
The announcement also revealed that Chainlink price Oracle would help secure the Bidao Chain DeFi ecosystem. As a direct benefit of the partnership, TRX token would now be available for use as a collateral asset.
🔥 Now #TRX is available on @Bidaochain’s DeFi ecosystem that is secured by the trustless @Chainlink price oracle. Bidao is joining the #TRON ecosystem so $TRX can be used as a collateral asset in the future.https://t.co/qPMlEkEPgO pic.twitter.com/ZJbNpqPWqF
— Justin Sun (@justinsuntron) April 19, 2020
TRON (TRX) as collateral on Bidao Chain
Bidao has two native tokens in its ecosystem – the governance token BID and the stablecoin BAI. Users have the opportunity to stake their BID tokens and offer support to the Bidao network. As for the BAI stablecoin, it is an algorithmic stablecoin pegged 1:1 to the US-Dollar.
In an official blog post, Bidao elaborated on the implementation of TRX, calling its usage “very easy”.
So, as a result of the alliance, when locked up in a collateralized debt position (CDP), one can use TRX to generate the BAI stablecoin. Simply put, the process starts by locking the TRX in the CDP. This then leads to BAI generation, which the CDP creator can freely make use of. Now, if he wishes to regain access to the locked TRX, he must first repay the BAI to the system. The user can opt to do this by a simple function call, which sends back the BAI to the CDP. This maneuver unlocks the TRX and the CDP creator is free to transfer it again.
About TRON and Bidao
TRON is a decentralized application (DApp) and blockchain-based operating system founded by the Singapore-based Tron Foundation. TRON’s decentralized platform allows digital content developers to bypass middlemen such as the Apple Store and Google Play Store.
Bidao is a blockchain ecosystem focused on the promotion of DeFi. Its goal is to foster the creation of a network support for DApps.
Recently, cryptocurrency hardware wallet firm, Ledger announced support for staking TRX. Also, the Getty/IO developers’ team came out with n upgraded app version TronWallet 3.2. Earlier this month, TRON had partnered with Poloniex to unveil its token launching platform and with Refereum for gamer rewards.