Full transcript of “10 Ways Midnight + Bitcoin DeFi Will Shake Up Cardano”. Click a timestamp to open the video at that moment. Need another video? Use the YouTube transcript generator.
0:00 In this video, I'm going to look at 10 top 10 impacts that is going to happen to the Kadano ecosystem because of the launch of Midnight and also Bitcoin DeFi. These things I think are going to make a big impact on the chain, increase activity, and hopefully also increase the price of ADA. So, let's get into it. Hey everyone, I'm Peter. If it's your first time here, thumbs up, like, subscribe, notification bell. But we are at the cusp of something absolutely huge for the Kadano ecosystem and I'll explain exactly why. Firstly, we have the Midnight team launching their chain and the tie-in with Kadano is massive. And let me just play you this clip here uh about the dependency of Midnight on Kadano. A lot of people are thinking,
0:47 hey, IG are launching this brand new chain and they are going to abandon Kadano. Not quite. This ties into Kadano very deeply. So, let me just play you this clip. Midnight can't operate without the ADA network confirmations. Yes, that's correct. Because the stake pool, well, it's an independent chain, but the governance set, the set of people actually validating the blocks on the midnight network are the SPOS from Cardano. So, if Cardano goes down, Midnight goes down. So, there you go. So, Midnight can't operate without the Cadano blockchain. There's a lot of tieins there. And if you have a look at the latest white paper that was released as well, there's a lot of incentives for Kadano state pool operators there to tie in with the smart contracts and then
1:33 also distribute rewards to their delegates in the Kadano ecosystem. So there's a lot of tie-ins there. Kadano isn't going away because of Midnight and because of all these tie-ins, it's going to have a big impact. The other thing that we're seeing a large impact from is Bitcoin OS and of course the IoG's version of this Bitcoin integration, their Cardinal white paper and how they're going to be wrapping in Bitcoin over to the Kadano ecosystem and bring over more liquidity and uh possible DeFi opportunities there, too. So, we got two projects that are delivering and bringing in Bitcoin liquidity, but then also Midnight's connecting all of these other chains over to the Kadano ecosystem uh probably for the first
2:19 time. So, we're going to see a massive amount of impact there. So, let's go through my top 10 impacts on Kadano because of Midnight and Bitcoin DeFi. So, first off, number one, massive liquidity injections. And I think this is quite obvious because firstly, Bitcoin holders uh will be looking for those DeFi opportunities and moving Bitcoin over to the Kadano ecosystem without selling it. So that's a really good incentive there for them. They can start participating in DeFi, borrowing lending protocols, perpetuals, all sorts of things. So there's a lot of opportunities there for Bitcoin holders. On the other side with Midnight, they're going to have a lot of liquidity coming in because people need to start moving those Knight tokens out of their Kadano wallet because the night tokens are
3:05 going to be deposited into Kadano addresses. Uh people are going to look for other opportunities within the ecosystem to something to do with their night tokens, possibly sell it, move it, stake it, whatever it might be. So there's a lot of possible injections of liquidity because of those two factors. The second thing here, Knight token will trigger ADA fueled activity. Yes, like I just mentioned, because there are these DeFi opportunities on Kadano, all the dexes and borrowing lending protocols may start looking into using the night token as collateral or setting up liquidity pools with additional rewards on there. So, if they're trying to attract the users in, we're going to see more activity in that respect. So if you are for example looking to provide liquidity on a DEX you usually pair it
3:52 up with a stable coin or ADA and if that's the case then users may be bringing in extra liquidity from other chains to make that happen. They also may be looking at providing collateral on various defy protocols borrowing lending protocols uh to earn some extra rewards there too. So lots of opportunities and all that will require more ADA to fuel that activity because you do have to pay for those transaction costs. So that most likely will be paid in ADA. Now the third thing here is the adoption and increased usage of Babel fees within the ecosystem. So Babel fees allow users to uh have transactions on Kadano but without using ADA as that transaction fee. They could use night for example and that's really desirable because it means that the user doesn't
4:39 need to bring in extra ADA into their wallet to be able to use the platform. They can use and pay for the transactions using the night token. So this is kind of the opposite of uh night uh point 2 here where night would trigger extra ADA into the ecosystem to pay for those fees. In this case, they'll be paying the fees in night tokens, but of course that is paid for with ADA from other means and mechanisms within the Babel fee um conversions. So that is something that we'll see a lot more of to make that user experience better. Now there are there is aquarium which is already implemented but then also FISA by M Labs which is coming in as well and that's all managed by smart contracts too. So we have lots of
5:26 interesting implementations of Babel fees and we're going to see the greater adoption of that really soon. Point number four here is the increased participation in staking and this isn't just staking ADA but then also staking uh the night tokens or Bitcoin within the ecosystem. So there will be more opportunities for this. I noticed with a lot of my videos lately that I've been putting out, people are saying, "Hey, I've got ADA in my wallet here. I've had it for ages in my hardware wallet, but I'm not staking it. Am I eligible for this particular Glacia airdrop? And I'm thinking, hm, it's it's kind of strange that you have a huge amount of ADA and not staking, but hopefully this will activate a lot of users out there and encourage them to actually stake and participate within the ecosystem. If
6:13 you're holding a large amount of ADA, which some of these users state that they have and have been since the early launch, uh, but they've never staked it and they're missing out on all these staking rewards since 2018 or 2020 when staking started to now. They've could have had hundreds hundreds of thousands more ADA in their wallet, you know, if if they're holding millions of ADA. So, that could very well be the case. So hopefully this triggers the adoption of staking within the platform if uh people aren't already staking. But hopefully we also see the increase staking of Bitcoin and also of night tokens within the ecosystem because that will also help increase the TVL overall of staked assets in the Kadano blockchain. Now point five here is all around
6:58 self-custody of assets. In the videos I've been creating lately, I'm seeing a lot of people simply holding those assets on exchange. So hopefully this means and makes people aware that there are a lot of opportunities if they start moving some assets over to self-custody wallets on the Kadano blockchain itself. So hopefully we do see this increase over time. Uh because if it's not your keys, it's not your crypto. That's the old saying there. And uh and from what I'm seeing in the comments and uh what people are saying on X, a lot of these exchanges out there such as Coinbase won't be participating in the claiming of the Knight tokens. And as a result, anyone that had the ADA staked on Coinbase, for example, won't be getting
7:43 the Knight tokens. That's what I'm hearing at the moment. Maybe they'll change their mind in the future. But hopefully this will encourage more people to actually stake within the Kadana ecosystem and take self-custody of those assets. Point number six here is the wallet numbers skyrocketing. And this is really good. You've seen other chains, they use the wallet metric as some way to measure the amount of users that are on their chain. And with the midnight airdrop, the glacio drop, every user out there is encouraged to use and create a brand new wallet, a sub account or a wallet that has no transaction history. And because of that, we will see a lot more wallets created for receiving this particular airdrop. It's estimated that there's possibly 37
8:29 million users out there uh that would potentially create new wallets for receiving the night tokens. And if they get even a fraction of that, we're going to see a massive increase of wallet numbers on the chain itself. So that's something pretty exciting. But we'll also see this from the Bitcoin DeFi perspective as well. So as users start moving assets over from the Bitcoin ecosystem over to Kadano, we'll see wallets being created to participate within the DeFi ecosystem. So either option here, Midnight or Bitcoin, we'll see the increase of wallets within the ecosystem. So that is something really exciting to see too. Point number seven here is DEX volume exploding. And this is very true because a lot of users when they come over to the Kadana ecosystem,
9:15 they may be bringing some assets over such as stable coins or they're simply playing around with the Knight token and they want to sell it for ADA or for a stable coin. And if that's the case, then we're going to see a lot of activity on all the dexes and DEX aggregators out there as people look for ways to exit out of Knight if they're looking for a quick win there or if they're bringing in assets and looking for uh other ways to participate within the ecosystem. For example, your users might be in the ecosystem claiming their Knight tokens, but then swapping it directly for SNE. And if that's the case, there's going to be a lot of activity on these dexes. So, it's definitely a metric that I'm pretty excited to see. Point number eight here is the fee pressure and network
10:01 congestion. Now, normally network congestion is a bad thing, but there are a lot of implementations at the moment to really scale up those transactions. And the fee pressure itself is good for any of the state pool operators out there because those fees are collected and distributed to the state pools out there that uh confirm all the blocks within the chain. So overall more activity, more fees on the chain is a good thing. So we'll see a lot more activity with the introduction of Midnight and Bitcoin DeFi. Point number nine here is the increased usage of L2s. We have two awesome solutions. We have Myith Myithil and Hydra that will help scale up Kadano's transaction layer to the millions per second. And we've seen this with the Hydra Doom uh demo and we
10:50 saw millions of transactions per second pass through that. Of course, there's a lot of infrastructure that's needed behind it and that will come with demand. We have really cool projects that are integrating in Hydra and some other ones that are implementing Myithil as well. So we will see Bitcoin DeFi actually participate on the L2s and as these other platforms such as Delta DeFi roll out their Hydra implementation of their decks, we'll see a lot of activity on there as well. So there'll be a lot of trades going through that and then rolling it back to the Kadano ecosystem. So these L2s are definitely going to gain more popularity and usage and we're going to see a lot more DAPs etc. implementing their Hydra solutions. So, really cool thing to see here as well. Now, point number 10. This is probably
11:37 an obvious one and I'm seeing in my comments already. People from different ecosystems interested in the midnight airdrop and Bitcoin DeFi coming into Kadano and exploring what's happening here. So, we're going to have a lot of brand new newcomers coming in. And of course, we need to make them aware of various scams that may be coming around. Educate them on how to use various Kadano D5 protocols and show them get basically give them a tour of what's available. There's a lot out there on the Kadano space. It's a growing and really exciting ecosystem. So hopefully you guys out there that have been in the Kadano space for a long time um show these guys and girls um what's really good and what's been cooking on the Kadano space. I know I cover a lot of
12:24 things in my channel and if you're interested in anything in the Kadano ecosystem, make sure you hit that thumbs up, like, subscribe, notification bell, and I'll keep you guys up to date with everything that's happening there. But if you're also liking my content, um I am also a Kadano Dreppp. you can delegate to my DRREP ID. I vote on the various governance proposals out there and help break them down for you guys. So, if you don't understand what's going on, at least you can check out what um I've been um looking into in regards to the governance um actions so that you can vote accordingly if you're voting for yourself. But if you want someone to vote on your behalf, you can delegate to my DREP profile. I've got the uh DREApp ids down here or you can connect your wallet and delegate directly from my website. And also, I want to do a big shout out to all my channel members as
13:10 well. Um, you guys absolutely rock. Um, these are all my channel members here at the moment. I couldn't make these videos without you guys. If you're interested in supporting the work that I do, links down below to how to learn how to become a member and help support my coffee addiction, too. Now, the other thing that I've also got here is my Kadano stake pool. So, if you are wanting to support simply by delegating your ADA to a pool and earn some staking rewards, check out ADA Oz, that's the ticker there, or the pool ID, you can find any of those on any of your Kadano wallets and start delegating your ADA and earning those staking rewards. And of course, if you're delegating your ADA, you will need to delegate to a DREP to be able to withdraw those rewards. So, you can do those two things at the same time. Now, last thing I'll mention here
13:56 is you can also listen to all of these podcast episodes. I do them all as YouTube videos, but if you are the type of person that listens to it in the car or on the on on the road, wherever you might be, you can listen to it on Spotify, Apple Podcast, Google Podcast. I think they close down Google Podcast. Um, but you know, any of the popular audio podcast platforms out there, you can listen to the content I create there as well. All right. So, there's a lot of things to go through there, but I'm pretty excited about what uh Bitcoin, DeFi, and Midnight have to bring to the Kadano ecosystem. I see a lot of growth, and I see a lot of uh potentially explosive growth within the Kadano ecosystem thanks to these two big things moving into the space here. If you enjoyed my content, like I said, hit
14:42 that thumbs up, like, subscribe, notification bell. Lots of links and whatnot down in the show notes below. You can also check out my website learncadano.io. I'll see you guys in the next video. [Music]
