Coinbase Introduces Wrapped ADA on Base for DeFi Trading
Coinbase has introduced a wrapped version of the native token of Cardano, ADA, on the Ethereum Layer 2 chain, Base. Named cbADA, this move will open the DeFi potential to ADA holders by connecting Cardano to such decentralized exchanges as Uniswap, PancakeSwap, and Aerodrome.
According to Coinbase Assets’ official X post, cbADA is fully backed 1:1 by ADA held in Coinbase custody, with transparent proof-of-reserves. This new token allows users to trade, lend, and provide liquidity on DeFi platforms that Cardano doesn’t natively support.
Coinbase is simplifying the process of users experimenting with DeFi applications outside of the Cardano network by wrapping ADA into an ERC-20 token. The decision is a part of the overall effort of Coinbase to create a unified liquidity across blockchains, with previous launches of cbETH and the recently introduced cbLTC to cover Litecoin.
In the meantime, the ecosystem of Cardano is humming. The new Midnight Glacier airdrop has already caused more than 200,000 mentions on X within a week. The airdrop will involve users engaging with the Cardano network to redeem NIGHT tokens, which will aid in on-chain activity.
Nonetheless, the daily active users have declined to approximately 20,000, as compared to 54,000 in the early part of the year. Nonetheless, the market mood is bullish, and Polymarket odds on Cardano ETF approval have reached 79%, the highest yet.
Now that cbADA is live on Base, ADA owners will be able to access the emerging Ethereum DeFi ecosystem, and it will add some freshness to the overall Cardano ecosystem.
Also Read: How XRP Holders Can Bag NIGHT Tokens in Cardano Midnight Airdrop?