Written interviews with DeFi projects on the Cardano blockchain.
Today’s guest in the Cardano DeFi series is Indigo Protocol, a groundbreaking DeFi solution enabling users to mint synthetic digital assets through collateralization.
👉 Discover how Indigo is reshaping Cardano’s DeFi landscape
Interview with Indigo Labs
Meet the Team
Daniel (Defi-dan), Marketing Lead at Indigo Labs, shares insights:
- Indigo Labs: A 15-member global team specializing in software development, security, and finance.
- Mission: To build and maintain the Indigo Protocol, Cardano’s TVL leader since its 2022 launch.
“We’re committed to keeping Indigo a top DeFi protocol through innovation and community collaboration.”
What Is Indigo?
Indigo Protocol lets users mint iAssets—synthetic assets tracking BTC, ETH, and USD—without holding the underlying assets.
Why Cardano?
- Security & Decentralization: Leverages Cardano’s Ouroboros PoS consensus.
- Scalability: UTxO model ensures high throughput.
- Interoperability: Bridges assets across blockchains.
- Aiken Smart Contracts: Enhances DeFi functionality for V2.
Synthetic Assets Explained
Pros:
- Diversification: Gain exposure to global assets on Cardano.
- Low Costs: Cheaper than trading actual assets.
- Composability: Use iAssets as collateral in other DeFi apps.
Cons:
- Overcollateralization: Requires 150%+ collateral for iAssets.
- Peg Stability: V2 aims to improve iUSD’s dollar peg.
Indigo Protocol V2 Upgrades
Fee Restructure:
- Maintenance Ratio (MR): Prevents undercollateralization.
- Redemption Margin Ratio (RMR): Stabilizes iAsset pegs.
- Interest Mechanism: Generates DAO revenue in ADA.
Aiken Optimization:
- Faster smart contracts for advanced features shelved in V1.
👉 Learn more about Indigo’s V2 roadmap
Catalyst Fund 11 Proposals
V2 Audit (#112532):
- MLabs audit to ensure security and efficiency.
Indigo Iris (#113424):
- Open-source DEX data API for Cardano developers.
FAQs
Q: How do I mint iAssets?
A: Deposit ADA or other approved collateral via the Indigo app.
Q: What’s the benefit of staking INDY?
A: Earn protocol fees and governance rights in the DAO.
Q: When will V2 launch?
A: Follow Indigo’s Twitter for updates.
Final Thoughts
Indigo exemplifies Cardano’s DeFi potential, merging security, innovation, and community-driven growth. With V2, expect enhanced peg stability, DAO revenue streams, and richer iAsset utility.
Connect:
Website | Discord | Twitter
Disclaimer: Opinions expressed are the interviewee’s alone. Not financial advice.