Indigo Protocol: Unlocking the World of Synthetic Assets on Cardano Blockchain

Real-World Assets (RWAs) have become a significant focus in the blockchain space, and synthetic assets are emerging as a prominent solution. Indigo Protocol is at the forefront of this narrative, offering decentralized and non-custodial synthetic assets on the Cardano blockchain. This protocol enables users to create collateralized assets known as iAssets, which track the price of underlying assets using oracles.

Indigo Protocol on Cardano

The Indigo Protocol operates on the Cardano blockchain, positioning itself as one of the top Cardano projects. It empowers users to create iAssets through smart contracts, ensuring a decentralized and non-custodial environment. By leveraging the Cardano blockchain, Indigo Protocol combines the advantages of blockchain technology with the ability to mimic the price action of real-world assets, such as Bitcoin, without actually owning them.

iAssets

The creation of iAssets is not limited to a predefined set. Anyone can propose the addition of a new iAsset by participating in the governance forum and submitting a proposal. The protocol operates in a straightforward manner, requiring users to collateralize their iAssets through a Collateralized Debt Position (CDP). The amount of collateral varies based on the chosen option: 150% of the asset's current value in a Cardano stablecoin or 200% collateral in ADA or other iAssets. Higher collateralization reduces the risk of liquidation.

Benefit of iAssets

One of the key advantages of using iAssets on the Indigo Protocol is the ability to access fractional shares. This opens up opportunities to trade various assets that were previously inaccessible. Additionally, the protocol eliminates restrictions on trading hours and geographical location, enabling round-the-clock trading from anywhere in the world. Users no longer need to buy and custody real-world assets, as the iAssets provide price exposure. This accessibility is particularly beneficial for individuals in regions with restrictions on foreign equities and forex markets, who can now access these markets through Indigo Protocol without facing the limitations of traditional financial systems.

INDY Token

The Indigo Protocol UI provides users with an intuitive interface to interact with the protocol and manage their iAssets effectively. The protocol also introduces its native governance token, INDY, which plays a crucial role in voting on DAO proposals. The token had a fair launch, ensuring equal opportunities for participants without any pre-sales. To vote, users must stake INDY, which gets locked until the voting period ends. INDY holders can also submit on-chain proposals by depositing 100 INDY, which will be refunded if the proposal passes.

As of now, INDY has a market price of $1.78, a market cap of $7.5 million, and a fixed supply of 35 million tokens. INDY can be traded on platforms like Minswap and Sundaeswap, offering liquidity and accessibility to interested users.

Flagship Thought

Indigo Protocol's success will lie in its ability to bridge the gap between blockchain technology and real-world assets. By providing users with on-chain exposure to synthetic assets, the protocol revolutionizes the way individuals access and invest in traditional markets. With its decentralized and non-custodial approach, Indigo Protocol opens up new possibilities for investors, offering them a seamless and efficient platform to create, trade, and manage synthetic assets.

As Cardano continues to foster innovation and attract more projects, the growth of decentralized applications like Indigo Protocol further strengthens the ecosystem's appeal. With a focus on RWAs and synthetic assets, Indigo Protocol is driving the adoption of Cardano and paving the way for a future where blockchain technology intertwines seamlessly with the traditional financial landscape.