Cardano’s stablecoin hub Ardana has announced a partnership with Optim Finance, a leader in the Cardano yield aggregation DeFi space to foster the smart contract platform’s DeFi ecosystem.
Ardana Partners with Optim Finance
In an announcement made on March 9, Ardana, a stablecoin hub committed to bringing DeFi primitives to facilitate the rapid growth of Cardano’s DeFi ecosystem stated it had joined forces with Optim Finance to tap the latter’s expertise in digital assets yield management.
In Optim Finance’s words, the project offers “easy, automated, secure asset management.”
In turn, Optim Finance will rely on Ardana’s services to ensure capital efficient and optimized revenue streams for its users. Optim Finance users will now be able to enjoy ease of accessibility to high yield and in-demand stable assets by collateralizing stablecoin loans with native digital assets.
Accordingly, Optim Finance will be equipped to further extend its yield generation capabilities.
Optim Finance’s Optim vaults – asset pools deployed to automated yield strategies – will be able to benefit from Ardana ecosystem’s efficient capital allocation via low friction native and stable asset trading on the Cardano network.
For the uninitiated, stableswap decentralized exchanges (DEXs) play a crucial role within the Optim vault multi-step strategies as they undergird some of the most important yield opportunities.
In addition, Ardana will function as an intermediary that offers the capacity to both generate and swap a wide array of stable assets.
The official announcement reads in part:
“Stableswap ecosystems also enable lower risk optimized investment opportunities for the users by drastically minimizing impermanent loss. Optim will capitalize on this opportunity by providing native auto-compounding and leverage capabilities for Ardana vaults to maximize its own internal revenue streams.”
Users to Earn DANA Rewards
The announcement adds that Optim’s liquidity provider strategies within the Ardana protocol will be able to participate in their liquidity mining mechanism by staking their LP tokens in the Ardana Rewards Enhancement Module (AREM).
In turn, users will receive DANA rewards for Optim’s strategy vaults that will help bring the two platform’s communities together both in terms of on-chain governance and voting power.
Further, the DANA tokens earned as rewards can then be locked in AREM to receive exDANA which will yield additional DANA tokens and governance power.
Over time, investment proposal goals and philosophies within both the protocols will converge to complement each other, subsequently leading to further bolstering Cardano’s DeFi ecosystem.