Partnership Announcement: Indigo is Accepting Ardana’s Stablecoin dUSD as Collateral!

4 min readOct 21, 2021

About the Partnership

Today we are very pleased to announce our latest partnership with Indigo. Indigo is an autonomous synthetics protocol built on Cardano that allows users to create fungible assets known as “synthetics” that mirror the value of real-world assets. Indigo synthetics are designed to be utilized as critical components in smart contracts and to bring the world’s assets to the blockchain.

Volatility is a scourge for most investors, crypto or not. As a result, Ardana is pleased to announce that our stablecoin, dUSD, will be one of the first stablecoin collateral approved on Indigo Protocol’s platform. This means that users will be able to use dUSD as collateral to mint synthetic iAssets on Indigo.

Indigo CDP investors can rest easy knowing that just one variable can negatively affect CDP health by minimizing the possibility of double-sided volatility affecting collateral-to-credit ratios. Indigo iAssets holders can also be happy knowing that a robust and stable capital base backs their synthetic assets CDP.

Ardana and Indigo will collaborate on the two following partnership lines:

Ardana stablecoins as an accepted form of collateral for creating Indigo iAssets (initially dUSD only).
dUSD-iAsset liquidity pools. iETH-dUSD, iBTC-dUSD liquidity pools on a select DEX.

Overview of the New Features

dUSD collateral

dUSD be accepted as a form of collateral when creating CDP-backed Indigo iAssets.

Indigo users will profit from this as they will establish CDPs with a collateral-to-loan ratio that is not subject to the double-sided volatility of both the collateral and synthetic asset values. As a result, Indigo’s users have a simpler time creating and maintaining their CDP. In addition, all iAsset holders will be aware that the iAsset portfolio has a reliable form of value-backing. This will help preserve the system from insolvency in times of sharp price reductions in other collateral assets.

dUSD-iAsset Liquidity Pools

By constructing Cardano’s first BTC/ETH-stablecoin liquidity pool, Ardana intends to create two liquidity pairings, iBTC & iETH versus dUSD, on a constant product DEX. These will help to bridge the gap between Ardana’s stablecoin and Indigo’s iAsset holding base.

Another advantage of such a pool is that it will effectively act as an on-chain double-sided hedged BTC/ETH exposure.

Joining Indigo’s Liquidity Mining Program

Ardana proposes that if these pools are developed, they become part of Indigo’s liquidity mining program, which will incentivize the formation of deep liquidity on these pools, allowing for even more efficient iAsset trade execution.

Eric Coley, Founder of Indigo, stated:

“Indigo is more than pleased to integrate with the most promising stablecoin solution present in the Cardano DeFi ecosystem! Surely there will be competitors, but we see Ardana as a leader in the landscape and deserving of our trust and collaboration efforts to anchor this ecosystem’s health and longevity.”

Ryan Matovu, Founder of Ardana, stated:

“We are delighted to announce that Indigo will be accepting Ardana’s stablecoin as collateral. Indigo is an established and trusted actor in the crypto space and we can see the long-term benefits for the ecosystems of both Ardana and Indigo with this new partnership.”

About Indigo

Indigo Protocol, a DeFi protocol that enables synthetic assets (iAssets) for traders to gain price exposure to real world assets. Users can mint (on-demand) and trade assets fully collateralized in ADA, stablecoins such as dUSD, and iAssets, tracking the price of any asset from Traditional ETFs to cryptocurrencies. Additionally, iAssets enable significant advantages over traditional assets: users can hold them in fractional shares and trade them irrespective of their geographic location or market hours. Users can benefit from price exposure to the underlying asset without going through the obstacles of purchasing and custodying the asset. Enabling price exposure to assets via Indigo’s noncustodial & decentralized architecture unlocks opportunities for wealth creation at a global scale for anyone with an internet connection.

About Ardana

Ardana is Cardano’s stablecoin hub which will bring the necessary DeFi primitives needed to bootstrap & maintain any economy to Cardano. Ardana offers an on-chain asset-backed stablecoin and a decentralized stable-asset DEX. The stablecoin is verifiably backed by an excess of on-chain collateral and will enable borrowers to take leverage on their ADA or other supported assets. The DEX is a highly capital efficient exchange enabling swaps with minimal slippage & fees while providing low-risk yield opportunities to liquidity providers.

Ardana