<ul><li>Cardano has introduced Cardinal, the first decentralized finance protocol for Bitcoin users, enabling access to DeFi tools like lending, borrowing, and staking without centralized solutions.</li><li>Cardinal uses MuSig2 for transaction signing without custodians, allowing safe BTC-to-Cardano transfers through BitVMX for seamless interaction between both networks.</li><li>Cardinal converts Bitcoin's unused outputs (UTXOs) into wrapped tokens securely, maintaining a 1:1 ratio with the original Bitcoin while keeping the assets in users' control.</li><li>Despite a decrease in TVL, Cardano aims to enhance liquidity and DeFi services for Bitcoin holders through Cardinal, bridging the gap between Bitcoin applications and Cardano smart contracts.</li></ul>

Cardano Launches Cardinal Protocol: Secure and Decentralized DeFi for Bitcoin Users

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