cardano_wolf

In collaboration with @__fallen_icarus I am writing content to change hearts and minds within the Cardano community. Our goal is to make P2P Defi/Defi Kernel a priority to all Cardano wallets in the ecosystem. We have people advocating for P2P Defi/Defi Kernel within Lace, IO, Cardano Foundation and others to help make it a reality... But so far efforts have stalled, because they are still awaiting approval from leadership. We are just two random Cardano holders with no influence... That's why we have chosen to build leverage through content. We hope to change minds and gather your support. And hopefully, we can make enough noise to get P2P defi through the finish line. So if the ideas we share and the future we paint speak to you, please petition: * Your favorite wallet * IO * Cardano Foundation * Emurgo To make P2P Defi/Defi Kernel a priority. I believe in the Cardano community. With your help... Let's make P2P Defi/Defi Kernel an idea whose time has come. You can read some of the blog posts my ideas are based on below: github.com/fallen-icarus/…

Check out the @pogun_io CTO explain their Bitcoin bridge and the Kernel's credit market 👀 The bridge is a major upgrade over existing BitVM bridges while maintaining the 1-of-n trust assumption.

Thank you. This makes me very happy.

How would non-margin loans benefit borrowers on Cardano/Bitcoin? New Cardano Defi, new possibilities 🧵 Collateral works very differently in margin and non-margin loans. That difference opens up entirely new possibilities for borrowers. In DeFi margin lending, borrowers must prove they can repay a loan by locking their assets in smart contracts. The rule is simple: the more assets you lock up, the more you can borrow. That’s the current standard. But there’s a downside. Once collateral is locked in a smart contract, it usually becomes idle unless: ❌ The price changes too much, so the collateral gets liquidated ❌ The loan is fully repaid ❌ A workaround is created (like wrapped assets) For example, Cardano lending protocols lock ADA out of staking and voting when it’s used as collateral. This issue doesn’t exist with non-margin loans. Instead, borrowers could prove their ability to repay using: ✅ Verifiable on-chain cash flow (staking rewards, mining revenue, NFT royalties, yield farming returns, on-chain holdings, etc.) ✅ Reputation and repayment history (basically Cardano’s version of a credit score) ✅ Productive asset ownership (RWAs, mining hardware, business inventory, etc.) ✅ Oracle-verified off-chain revenue (tax filings, salaries, grants, government records, etc.) ✅ Trusted third parties (credit bureaus, FICO scores, professional auditors, etc.) ✅ Future revenue claims (token unlock schedules, business MRR, etc.) You could even combine several of these “proofs” — like yield farming returns, a FICO score, and future token unlocks — to qualify for larger loans at better rates. And yes, borrowers could still use ADA as collateral. But unlike margin loans... The kernel would let ADA secure the loan while still staying productive through staking, rewards, and voting. Plus, ADA would only be liquidated if the borrower actually defaulted on the loan — not because of random price swings. That’s a fundamentally different way to do DeFi.

This is massive, a zero-effort tool you can run to optimize your smart contracts. You don't need to modify your smart contract code at all, just put the compiled bytecode into the command line tool, and get the optimized bytecode as output. Free efficiency, there is no reason for dApps not to be running this right now to reduce end-user fees and improve their application throughput.

Friendly reminder that babel fees have already been implemented for 1+ years on @FluidTokens Aquarium. And yes, they are open source, anybody can use them and they are audited. The only fair alternative to Aquarium are off-chain Babel fees implementable with nested transactions. Please stop giving treasury money for already available solutions!

I strongly urge all DReps to take Thomas’ feedback seriously when evaluating ZK / cryptography-related treasury proposals. These proposals are extremely technical and very difficult to assess without deep domain expertise. Even as someone highly involved in Cardano development, in many cases I don't even have the specialized knowledge required to properly evaluate proposals of applied zero knowledge technology on their technical merits. Thomas is one of the very few people in the Cardano ecosystem who does have that expertise; and more importantly, he has a proven track record of delivering production-grade applied ZK technology on Cardano. A huge portion of ZK work in this ecosystem either directly uses, builds on, or is downstream of work Thomas has produced. He has consistently pushed the boundaries of what is possible with ZK on Cardano. So when he gives technical feedback on ZK proposals, that feedback should carry significant weight. DReps do not need to become cryptography experts overnight, but they do have a responsibility to recognize when highly specialized expertise is needed and to listen carefully to the people who have actually delivered in that domain. Please factor this feedback heavily into your votes.

The Pogun credit market is currently under security audit by @txpipe_tools. We’re committed to delivering our products starting with the credit market 🫡 Audit completion expected May 20th.

Vote Yes for making Cardano the definitive home of Bitcoin DeFi ✅ x.com/GrahamsNoPlus1…

When the market moves against you most DeFi lending protocols liquidate your collateral, but Pogun doesn't. We built an interactive tool so you can see the difference for yourself! Run scenarios across multiple loan models, and see exactly what happens to your collateral during a market crash depending on which protocol you're using. Seeing BTC fall has never felt so safe. Try it out: pogun.fun

Again? Do I need to write another thread, or did we learn our lesson last time? This is a full on grift. The "Why are you the best suited to deliver this work?" section tells us they are best suited because they have delivered lots of great zk projects to the ecosystem including: zkPass integration for Cardano, funded in Project Catalyst Fund 12 and completed. For those of you that don't remember, zkPass was proposed as an integration allowing Cardano dApps to consume zkPass oracle feeds. The proposal milestones were all submitted and funds were released, and what was actually delivered was a webapp where you guess the capital of random European countries. It had absolutely nothing to do with zkPass. There is, to date, no way to consume zkPass oracle feeds on Cardano. There is not a single tx you can point to that has consumed one.

Pogun is the best plan to bring Bitcoin users to Cardano 🤝 x.com/ThroneOfCrypto…

One argument kills entire narrative. Look up Draymond’s stats during the 32-4 run under Luke Walton. Draymon was a beast at PF on both ends of the floor. In February of that year, the man shoot 47% from 3. Draymond had a legit argument as an all-time great PF during that time. Then the next month his 3-point shooting percentage drops to around 10%. What happened that month? Steve Kerr came back and kept antagonizing him about shooting. When consider that when Draymond scores the warriors almost certainly wins… you realize how much more dangerous the warriors would have become had Steve Kerr not stunted Draymond’s growth offensively.

Austin rivers smoked it here. Said nothing but facts about draymond

First of all, there’s a difference between governance and decentralized governance. Cardano needs the later. Second Your argument assumes we can just graph any findings about governance on Cardano. How many of these documents factor in stakepools into their governance research? Cardano’ design and architecture mean we need a distinct governance model.

@wolf__nomadic @IOHK_Charles Governance has existed for centuries so def no lack of data. Wrt bc: C wasn’t 1st so DOT,XTZ…Also ✅out the exec summs of these rsrch papers to see for yourself Stanford, Oxford & other U’s doing ext rsrch w/o having MVG in use Gov rsrch papers super easy to find w Google or AI

I am getting insanely tired of hearing a false narrative that we abandoned scaling in favor of governance. There was continuous effort and work from before even Shelley on scaling (for example eprint.iacr.org/2018/1119.pdf) It was an enormously challenging problem that we relentlessly attacked from many different angles including L2 innovations, a brand new accounting model- eutxo- zero knowledge ideas, partnerchains, and capstoning with Leios. Many of these ideas required deep r&d and original publications. This cannot be made faster by throwing more people at it. It's research. In the meantime while the research was being done, we implemented Voltaire because it unlocks the treasury for the entire community to use thereby making Cardano stronger and also scaling will require many parameter changes we cannot unilaterally make. No one was pulled from scaling research and development. There were dozens of scientists and engineers brainstorming and prototyping for years. A semi-centralized and not secure halfway house could have been implemented that crashed all the time like other blockchains. Or we could do it right like we've always done things with the Cardano ecosystem. We chose the latter. We now have a full design for Leios, Peras, and a great L2 strategy. They are elegant and future proof. We now have the best scaling strategy in the entire cryptocurrency space. That's what the time bought us. Implementing Voltaire means that every single one of you has a voice and vote on when and how to turn that on. You also exercised that vote and voice on a desire for a multi-client ecosystem. So it's going to be turned on multiple times by independent teams. That's the point of governance. Critics somehow argue that we should have just made a mad rush for scalability, robbed everybody of a voice, and somehow we would be ahead today. What that means in practice is none of you would be dreps, there would no constitution, no constitutional committee, you would have no say when and how we upgrade the network, you would have no say on client diversity, there would be no legitimate members-based organizations, we would have no legitimate- community endorsed- road map, and over a billion Ada would be locked for no one to use. The very fact that Bitcoin is having an issue trying to figure out whether to steal Satoshi's money for the "greater good" (BIP361) or just simply let someone else steal it (BIP360) is the single greatest endorsement of the value of governance. It's going to literally break their ecosystem into two halves and cause catastrophic economic harm. We will completely sidestep this issue thanks to governance.

@Power2theEdge @IOHK_Charles can’t speak on the order of delivery since I am not IO. But my question to you would be… How can you do extensive research on governance of blockchain on a piece of paper with no data?

@wolf__nomadic @IOHK_Charles Scaling is diff than gov & MVG is a way to enable a feedback loop. At same time, an MVG based on ext rsrch has far > chance than MVG that doesn’t. So why enable MVG b4 a solid scaling sol. is enabled that would attract > users, > diversity for MVG later? U have diff idea than👇?

I never said governance cannot benefit from research. I am saying that Leios and governance are completely different problem. So the research process will not be the same. The peer reviewed process that helped solve Leios —while crucial— will not be enough to solve governance. Cardano governance is different than Ethereum and others. And decentralized governance is a broad field of study. Having a minimum viable government allows us to research and iterate specifically for Cardano governance.

@wolf__nomadic @IOHK_Charles I’m missing your point of why something far more complex cannot benefit from research than something that’s simpler that can benefit from research

Scalability is a systems design problem (architecture and code). This can be address with research and peer review process. But governance is far more complicated. Think about it, democracy was invented by ancient greek thousands of years ago. Yet we still have not create a newer/better system. That's how difficult governance is. Plus, there is no perfect government today in real world, let alone on a blockchain. That's why I agree with launching a Minimum Viable Governance and iterating on it over time. Besides, finding flaws in Cardano's live governance model is part of the research. Governance can't be solved on paper. That's why Leos has been resolved, but governance is still a work in progress.

@IOHK_Charles Why didn’t governance, which you’ve stated so many times is the most challenging of the 5 pillars of the roadmap get anywhere near the research effort that scaling did?

That’s just the first step. An open sourced and decentralized credit market means economists will —for the first time— have access to data that are proprietary in current Tradfi. So once @pogun_io becomes profitable enough, we should probably open economics labs at the different universities… The way Cardano once did for systems design and peer review research. Those labs would us to model different products and incentives. Over time, this would compound into a massive competitive advantage. Because accurate and available data + modeling would allow us to iterate faster than Tradfi can.

We need emerging market economists, not quants or market makers. Their expertise only works in established markets. Building new markets requires a different skillset entirely. Blockchain is an emerging market.

I have no beef with anyone listed on the committee… I just want to state the obvious. Credit is an economic primitive, not a technical one. So why aren’t there any economists on the committee? Devs can to build smart contracts. But markets are also about incentives. Building the Defi kernel tackling things like: • How do you price risk without a credit bureau? • How do you score credit without a Fico? • What makes a bond NFT liquid enough to trade, but stable enough to hold? • How do to establish an on-chain yield curve without a central bank? • What grace period balances borrowers protection and lenders safety? • How do you design loan restructuring in a decentralized market? These are not just “coding problems”. They’re economic problems. We need economists to calibrate incentives. So why is there no economists on the committee?

@F900102 @ItsDave_ADA Pogun is complimentary. It's also unique and the most holistic approach to bitcoin defi. It can work with the other btc defi initiatives respectively. It's important for the defi kernel too. x.com/omerh_/status/…