cardano_wolf

Member of the Cardano/Midnight network state

Helping @__fallen_icarus push P2P defi/Defi Kernel to the finish line.

[cardano_wolf @wolf__nomadic]

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: https://t.co/tLz3aR2etH

[cardano_wolf @wolf__nomadic]

@IOGroup What’s the move for the L2 strategy since that proposal didn’t pass?

[Fede | TxPipe.io | 🧉 @FedeWeill]

Most developers don't care about UTxOs, eUTxOs, validators, reference inputs, or any other Cardano primitive.

They care about solving business problems.

Every project we've shown Tx3 to agrees on one thing:
making Cardano protocols feel like consuming a normal API is probably one of the fastest paths to adoption.

[cardano_wolf @wolf__nomadic]

@IOHK_Charles @thinktank8691 Any updates on quantum hosky? It's been a while.

[fallen-icarus @__fallen_icarus]

Interesting technical write-up about @pogun_io 👀

[Input Output Group @IOGroup]

Leios is getting closer.

The first public SPO testnet remains on track for June 2026, and progress this week was significant:
• Treasury funding approved by the Cardano community with 88% support
• CIP-0164 update reduced Leios block certificates from ~8 kB to ~200 bytes — around 40× smaller
• The reference implementation was successfully rebased onto the upcoming Dijkstra era
• Piranha, a new adversarial testing tool, is now live for protocol attack simulation

A lot of deep engineering work is coming together behind the scenes and the first public testnet is getting closer!

[cardano_wolf @wolf__nomadic]

@adamKDean @PaddyCTO I think we'll be fine in the medium term.

Peras, Leos, L2s (hopefully) and Bitcoin Defi... If we can land all 4, then we will attract a massive wave of people to the ecosystem.

We just need to execute.

[cardano_wolf @wolf__nomadic]

@BobbysBits2 I hope so

[cardano_wolf @wolf__nomadic]

Ok, so IO's L2 proposal didn't pass. Now what's the strategy?

We won't just abandon L2s, right?

[Gravity @gravitycardano]

Batchers and midllemen hate that this is coming to Cardano:

→ a single transaction
→ no signing, but the same security
→ a better UX ( 😉 )
→ no middlemen

It feels so good to finally see a live swap on Gravity 😤

[cardano_wolf @wolf__nomadic]

Learning about non-margin loans, TradFi, and the DeFi kernel has made me realize that the current iteration of Cardano DeFi is a toy by comparison.

The more I learn about non-margin loans, the more it all feels foreign.

Like being dropped in the middle of China with no friends and no knowledge of the language or culture.

It’s far too different from what we have grown accustomed to in crypto DeFi.

If you doubt me, read this and tell me: does this look like anything that’s being done in crypto today?👇

[cardano_wolf @wolf__nomadic]

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.

[cardano_wolf @wolf__nomadic]

@InputEndorsers @jskinzz @Cardano_CF That is a great idea. I'd be more aligned with Intersect doing this than CF, since they are community-elected.

We should probably narrow down a list of 2-3 priorities and focus on those before moving on to others. Our time and budget are limited after all.

[Adam Dean @adamKDean]

We are Cardano. We are going to change the world.

[Sundial @SundialProtocol]

Our next stage of audit is now live ☀️

With $2,000 in bounties, @HackenProof has launched a Crowdsourced Audit of Sundial’s BTC Lockers and Testnet.

We invite developers, security researchers, and the wider community to take a look, test the system, and help us make Sundial even stronger.

Check it out in the post below!

[Input Output Group @IOGroup]

The Mithril signer has reached v1.0.0 and is now production-ready on mainnet.

Distribution 2617.0 includes:
• Mithril signer 1.0.0, stable and ready for production deployments
• Support for Cardano node 11.0.1
• Statically built binaries with no glibc dependency
• Protocol improvements and bug fixes

This release follows nearly three years of testing, feedback, and hardening alongside stake pool operators running Mithril on the mainnet.

The result: a major step toward fast, trustless chain bootstrapping for Cardano.

Full release notes:
https://t.co/No1fhLXBUY

[Sam Delaney @sde_laney]

Our bug bounty program has been going for a week now. Here's the breakdown of the 229 reports we've received:

14 new & untriaged
215 withdrawn / informational / out of scope
0 low severity findings
0 medium severity findings
0 high severity findings
0 critical findings

😏

[Jason Appleton (Crypto Crow) @jasonappleton]

Just...YES! We didn't need this in 2021 and having it in 2025 wouldn't have helped much due to the transition. But now? NOW WE GO!

[Pogun @pogun_io]

Every Bitcoin bridge you've used wraps Bitcoin.

Your BTC goes in and an IOU comes out. It is a promise to get your deposited amount of BTC back, but it's not technically the exact BTC you put in. This makes security, taxes, and everything else messier than it has to be.

[cardano_wolf @wolf__nomadic]

Cardano Dreps are at risk of being co-opted, if we do nothing about it.

Once the Cardano treasury runs out of funds, it won’t matter many ADA is being delegated to your stakepool.

Because political power will shift to those who fund the treasury. And dreps will be forced to acquiesce to their demands or there’ll be no funding.

In a world where Cardano’s treasury can’t sustain itself, Dreps power is temporary at best.

Cardano’s treasury must become self-sustaining or we will live to see the day when our entire legislative branch gets co-opted.

[fallen-icarus @__fallen_icarus]

Did you know that margin loans were first used on a large scale during the Roaring 20s in the US? Do you know how it ended?

A massive cascade of margin calls turned a market dip into the 1929 crash.