Ontology announced on Apr 25 that it has entered a partnership with Bidaochain. It also said that ONT can be used as collateral in the Bidaochain ecosystem. This is specifically meant to supplement the stablecoin initiative by Bidaochain, where ONT will be used to generate BAI stablecoin. The stablecoin BAI will be backed 1:1 with the United States Dollar (USD), backed by collateral assets and the peg maintained by the algorithm.
The decision to allow Ontology native ONT tokens to be used as a collateral asset, shows both trust and confidence in the long term stability of the token. The newfound use case for the ONT token would have a positive impact on its price and will further reduce available supply.
🚀 @OntologyNetwork is entering a partnership with @Bidaochain. Ontology is joining the #Bidao ecosystem so $ONT can be used as a collateral asset in the future. https://t.co/UhKARJsQKK pic.twitter.com/9xvj85QKPX— Bidao (@Bidaochain) April 25, 2020
Bidaochain is a blockchain network dedicated specifically to Decentralized Finance (DeFi) and focuses on collaboration with other blockchains. The Bidao ecosystem uses two tokens – BID for governance and BAI as collaterized stablecoin. The consensus mechanism used by the network is Proof of Stake (POS).
Ontology is a high performance public blockchain and distributed collaboration platform. It essentially provides framework for development of different blockchains, suited for specific businesses with various governance models.