DeFi Solution On Cardano Will Allow Earning Yields On Staked ADA

A new DeFi solution on Cardano will allow the users to earn yields on their staked ADA, once the goguen era is launched, without having to unstake their funds. Liqwid Finance, the new Defi solution on Cardano, will provide this opportunity by providing liquidity to the ADA market all while the tokens are staked on the mainnet so let’s read more in today’s Cardano news.

Most of the conversation that is focused on Cardano’s Goguen era seems to be analyzing all the needed steps that are needed to unlock the smart contract functionality but the concrete things that this will bring seem to haven’t been discussed yet. Liqwid Finance which is a Defi project built on Cardano, outlined some of these features that Goguen will enable and gives the community a glimpse into what the future will look like on this blockchain.

The project won the first prize on the IOHK Wyoming Hackathon back in 2020 and said that they also received inquiries from the community about the upcoming Liqwid token. The platform focuses on peer-to-peer lending and will also launch governance tokens which will be distributed as a reward for the users that provide liquidity. The company explained that these tokens will launch via user distribution and yield farming contracts just as the first HFC event for Goguen happens in a month.

Many members of the ADA community are quite happy about the chance to provide liquidity to lending markets on the blockchain so some are worried that the liquidity pools will drain the ADA delegated to stake but the Liqwid proposal disapproved these claims and revealed that users that want to supply liquidity to the lending pools won’t have to give up on delegating the tokens to stake pools.

The token locking functionality released one year later and when combined with other features or smart contracts, it will give a chance to the users to earn more funds on top of the standard staking rewards which they get for delegating. By doing this, the funds delegated to the sake pools will not be affected. The company revealed that the core developers are now exploring the option of a hardware wallet connection which will enable users to hold their coins in a hardware wallet but still provide liquidity to any lending pool.