As Cardano gets further involved in DeFi, Hoskinson believes that it will be a much better project than MakerDAO

• As the sector of DeFi starts to gain momentum throughout the world and specifically the crypto industry, the creator and the CEO of Cardano, Charles Hoskinson recently published a video revealing the companies plans to get involved in this nascent sector.

• Recently speaking in an ask me anything session on YouTube, the CEO said that he had almost become obsessed with decentralised finance over the past few weeks.

As the sector of DeFi starts to gain momentum throughout the world and specifically the crypto industry, the creator and the CEO of Cardano, Charles Hoskinson recently published a video revealing the companies plans to get involved in this nascent sector.

Recently speaking in an ask me anything session on YouTube, the CEO said that he had almost become obsessed with decentralised finance over the past few weeks. From this, it saw him getting involved in numerous discussions and interviews as well as writing several reports on the subject to make sure they are well equipped for the future.

Specifically going on to highlight IOHK, Hoskinson said they had been working on some serious research recently on some of the more popular things that DeFi has to offer. Of course, he didn’t give too much away and more than likely won’t until the project is ready to be revealed to the world.

What seems to be in the works at the forefront now is the partnership between IOHK and Emrugo in order to develop an algorithmic stable coin. According to the CEO, this could be a significantly better project than MakerDAO. 

He further went on to say:

“[…] We’ve partnered with Emrugo, and we’re right now working on the logistics of a stable coin with them that we’re going to be building first on ergo to verify everything works correctly, and then we’ll pull it over into Cardano and this is going to be an algorithmic stablecoin.”

He continues:

“We think it’ll be significantly better than MakerDAO. That’s just one of many DeFi things that are going on right now”

Cardano seems to be a latecomer to the DeFi space but rather than seeing this as a disadvantage, Hoskinson explains that this is a good thing in the long run. He thinks that it is better to be the second mover than the first-mover when it comes to DeFi. 

He went on to say:

“The reality is that the first-mover advantage is actually a disadvantage. Those network effects were ephemeral and often covered with mistakes and scars and explosions. You actually want to be in the imitator, the second-mover category for DeFi.” 

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!