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New Partnerships Aside, Cardano Is Still All About Utility

On July 5, Input Output Hong Kong, the organization behind the Cardano (CCC:ADA-USD) blockchain, announced two partnerships of interest to holders of ADA.

The first sees the Nexo Exchange listing Cardano’s native cryptocurrency.

This means owners of ADA can buy and sell through the exchange, earn interest on their existing coins, and borrow against the coins in U.S. dollars or one of the other 40+ fiat currencies.

The second partnership is a collaboration with Decentralized Financed (DeFi) liquidity aggregator Orion Protocol. As far as I can tell, Orion allows you to get the best price on your crypto buys and sells across all the global crypto exchanges.

Of the two partnerships, I’m going out on a limb to argue that the latter is more important to Cardano than the former.

Here’s why.

Cardano and Celsius Network

Let’s assume that I own 30,000 ADA. Assuming a price of $1.42 (it’s trading just shy of that this morning) that’s about $42,600.

The first partnership means I could take my ADA and transfer it to my Nexo wallet. I would then receive interest up to 12% on the value of my assets.

At the same time, I could use the assets as collateral to borrow U.S. or Canadian dollars or any of the other fiat currencies available.

“The key to Orion’s value is its built-in liquidity aggregator, which automatically allows its users to access multiple exchanges in order to obtain the best spot price for any supported cryptocurrency, embodying the best features of both centralized and decentralized exchanges,” states Orion Protocol’s white paper.

So, theoretically, I could use Orion Protocol’s price aggregator to buy some ADA and then transfer it to my Nexo wallet to earn interest or borrow against it.

From where I sit, it’s a lot like the chicken or the egg argument. I want to own Cardano, but I don’t want to pay an outrageous price...

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