10 Ways Midnight and Bitcoin DeFi Will Transform Cardano

00:00 Midnight and Bitcoin DeFi to set Cardano soaring
02:22 Massive Liquidty Injection
03:22 Trigger ADA Fueled Activity  
05:31 Increased Staking Participation  
06:56 Self Custody  
07:55 Wallet Numbers Skyrocketing  
09:06 DEX Volume Exploding  
09:57 Increased Fees and Network Usage  
10:31 L2 Adoption  
11:35 Newcomers  
12:34 Delegate to My DRep Profile  
13:06 Shoutout to Members  
13:26 Stake Your ADA at ADAOZ  
13:55 Listen on Spotify  

Midnight and Bitcoin DeFi are about to transform Cardano — and in this video, we break down exactly how. Peter shares the top 10 impacts that these two major developments will have on the Cardano ecosystem. With the NIGHT token being airdropped into Cardano wallets and new Bitcoin-wrapping protocols entering the scene, users will see big changes in how they use and interact with DeFi on Cardano. Topics covered in this episode:

1. Liquidity injection from Bitcoin holders and NIGHT token distribution
2. ADA usage increase as users pay for DeFi activity
3. Growth of Babel fee systems like Aquarium and Feeser
4. More users staking ADA, Bitcoin, and NIGHT
5. Users shifting to self-custody wallets to qualify for airdrops
6. Millions of new wallets expected
7. DEX volume exploding from NIGHT and stablecoin swaps
8. Higher network fees and congestion — but also more rewards for SPOs
9. Real usage of Hydra and Mithril Layer 2 solutions
10. Newcomers joining Cardano and needing education and protection

Whether you're a long-time ADA holder or brand new to the ecosystem, this episode gives you the insights you need to prepare for what's next. Support the channel by delegating to the ADAOZ stake pool or delegating governance to Peter’s DRep profile. Learn more at https://learncardano.io.

Episode Transcript

Speaker 1 (00:00):
In this figure, I'm going to look at ten top
ten impacts that is going to happen to the Kadana
ecosystem because of the launch of Midnight and also Bitcoin
DeFi these things I think are going to make a
big impact on the chain, increase activity and hopefully also
increase the price of Ada. So let's get into it.
Hey everyone, I'm here. If it's the first time here,

(00:21):
thumbs up like subscribe notification bell. But we are at
the cusp of something absolutely huge for the Cardana ecosystem,
and I'll explain exactly why. Firstly, we have the Midnight
team launching their chain and the tie in with Kadano
is massive. And let me just play you this clip
here about the dependency of Midnight on Kadano. A lot

(00:45):
of people are thinking, hey, ig are launching this brand
new chain and they are going to Abandonkadana. Not quite.
This ties into Cadana very deeply. So let me just
play this clip.

Speaker 2 (00:58):
Midnight can't operate without the EATA network confirmations. Yes, that's correct,
because the stakebool opera. It's an impended chain, but the
governance set, the set of people actually validating the blocks
on the Midnight network are the spos from Cardano, So
if Cardina goes down, Midnight goes down.

Speaker 1 (01:15):
So there you go. So Midnight can't operate without the
Cardano blockchain. There's a lot of tie ins there, and
if you have a look at the latest white paper
that was released as well, there's a lot of incentives
for Kardano stackpool operators there to tie in with the
smart contracts and then also distribute rewards to their delegates

(01:35):
in the Caardana ecosystem. So there's a lot of titans there.
Kardano isn't going away because of Midnight, and because of
all these tie ins, it's going to have a big impact.
The other thing that we're seeing a large impact from
is Bitcoin os and of course the iog's version of
this Bitcoin integration, their Cardinal white paper and how they're

(01:58):
going to be wrapping in bitco coin over to the
Caardana ecosystem and bringing over more liquidity and possible defy
opportunities there too. So we've got two projects that are
delivering and bringing in bitcoin liquidity, but then also Midnight's
connecting all of these other chains over to the Kadano ecosystem.

(02:18):
Probably for the first time, so we're going to see
a massive amount of impact there. So let's go through
my top ten impacts on Kadano because of Midnight and
Bitcoin DeFi. So, first off, number one, massive liquidity injections.
And I think this is quite obvious because firstly, bitcoin
holders will be looking for those DeFi opportunities and moving

(02:39):
bitcoin over to the Caardano ecosystem without selling it. So
that's a really good incentive there for them that can
start participating in defive borrowing, lending protocols, perpetuals, all sorts
of things. So there's a lot of opportunities there for
bitcoin holders. On the other side, with Midnight, they're going
to have a lot of liquidity coming in because people

(03:00):
need to start moving those night tokens out of their
Cardano wallets. Because the night tokens are going to be
deposited into Cadino addresses, people are going to look for
other opportunities within the ecosystem to something to do with
their night tokens, possibly sell it, move it, stake it,
whatever it might be. So there's a lot of possible
injections of liquidity because of those two factors. The second

(03:23):
thing here, night token will trigger aida fueled activity. Yes,
like I just mentioned, because there are these DeFi opportunities
on Cardano or the DEXes and borrowing lending protocols may
start looking into using the Night token as collateral or
setting up liquidity pools with additional rewards on there. So
if they are trying to attract the users in, we're

(03:45):
going to see more activity in that respect. So if
you are, for example, looking to provide liquidity on a dex,
you usually pair it up with a stable coin or AIDA,
and if that's the case, then users maybe bring in
extra liquidity from other chains to make that happen. They
also may be looking at providing a collateral on various

(04:05):
defied protocols of baring lending protocols to earn some extra
awards there too, So lots of opportunities and all that
will require more AIDA to fuel that activity because you
do have to pay for those transaction costs, so that
most likely will be paid in AIDA. Now, the third
thing here is the adoption and increased usage of babel
fees within the ecosystem. So babel fees allow users to

(04:29):
have transactions on Candano, but without using AIDA as that
transaction fee. They could use night for example, and that's
really desirable because it means that the user doesn't need
to bring in extra AIDA into their wallet to be
able to use the platform. They can use and pay
for the transactions using the night token. So this is
kind of the opposite of point two here, where night

(04:54):
World trigger extra AIDA into the ecosystem to pay for
those fees. In this case, they'll be paying the fees
in Night tokens, but of course that is paid for
it with ADA from other means and mechanisms within the
Babel feed conversions. So that is something that we'll see
a lot more of to make that user experience better.

(05:14):
Now there are there is Aquarium which is already implemented,
but then also feesa by m Labs which is coming
in as well, and that's all managed by smart contracts too,
So we have lots of interesting implementations of Babel fees
and we're going to see the greater adoption of that
really soon. Point number four is the increased participation in staking,

(05:35):
and this isn't just staking ADA, but then also staking
the Night tokens or Bitcoin within the ecosystem, so there
will be more opportunities for this. I noticed with a
lot of my videos lately that have been putting out
people are saying, Hey, I've got ada in my wallet here,
I've had it for ages in my hardware wallet, but
I'm not staking it. Am I eligible for this particular

(05:58):
glacier air drop? And I'm thinking it's kind of strange
that you have a huge amount of aider and not staking.
But hopefully this will activate a lot of users out
there and encourage them to actually stake and participate within
the ecosystem. If you're holding a large amount of eight,
which some of these users state that they have and
have been since the early launch, but they've never staked

(06:21):
it and they're missing out on all these staking awards
since twenty eighteen or twenty twenty when staking started to
now they've could have had hundreds, hundreds of thousands more
eight in their wallets, you know, if they're holding millions
of eight, So that could very well be the case.
So hopefully this triggers the adoption of staking within the
platform if people aren't already staking. But hopefully we also

(06:44):
see the increase staking of bitcoin and also of night
tokens with an ecosystem, because that will also help increase
the TVL overall of staked assets in the Condino blockchain. Now.
Point five here is all around self custody of assets.
In the videos that I've been creating lately, I'm seeing
a lot of people simply holding those assets on exchange.

(07:07):
So hopefully this means and makes peopleware that they are
a lot of opportunities if they start moving some assets
over to self custody wallets on the Condina blockchain itself.
So hopefully we do see this increase over time, because
if it's not your keys, it's not your crypto. That's
the old saying there, And from what I'm seeing in

(07:28):
the comments and what people are saying on x, a
lot of these exchanges out there, such as Coinbase won't
be participating in the claiming of the night tokens, and
as a result, anyone that had the aida staked on Coinbase,
for example, won't be getting the night tokens. That's what
I'm hearing at the moment. Maybe they'll change their mind
in the future, but hopefully this will encourage more people

(07:50):
to actually stake within the Condina ecosystem and take self
custody of those assets. Point number six here is the
wallet numbers skyrocketing and this is really good. You've seen
in other chains they use the wallet metric as some
way to measure the amount of users that are on
their chain, and with the midnight air drop the Glacier drop,

(08:11):
every user out there is encouraged to use and create
a brand new wallet, a sub account, or a wallet
that has no transaction history, and because of that, we
will see a lot more wallets created for receiving this
particular air drop. It's estimated that there's possibly thirty seven
million users out there that would potentially create new wallets

(08:34):
for receiving the night tokens, and if they get even
a fraction of that, we can see a massive increase
of wallet numbers on the chain itself. So that's something
pretty exciting. But we'll also see this from the Bitcoin
DeFi perspective as well, so as users start moving assets
over from the Bitcoin ecosystem over to Cadano, we'll see
wallets being created to participate within the DeFi ecosystem. So

(08:58):
either option here Midnight or Bitcoin, we'll see the increase
of wallets within the ecosystem. So that is something really
exciting to see too. Point number seven here is dex
volume exploding, and this is very true because a lot
of users when they come over to the Condona ecosystem,
they may be bringing some assets over such as stable coins,

(09:19):
or they're simply playing around the night token and they
want to sell it for eight or for a stable coin.
And if that's the case, then we're going to see
a lot of activity on all the DEXes and dex
aggregators out there as people look for ways to exit
out of Night if they're looking for a quick win there,
or if they're bringing in assets and looking for other

(09:41):
ways to participate within the ecosystem. For example, the users
might be in the ecosystem claiming their night tokens but
then swapping it directly for snack, and if that's the case,
there's going to be a lot of activity on these DEXes.
So it's definitely a metric that I'm pretty excited to see.
Point number eight here is the fee pressure and network congestion. Now,

(10:03):
normally network congestion is a bad thing, but there are
a lot of implementations at the moment to really scale
up those transactions. And the fee pressure itself is good
for any of the statepool operators out there because those
fees are collected and distributed to the state pools out
there that to confirm all the blocks within the chain.
So overall, more activity, more fees on the chain is

(10:26):
a good thing. So we'll see a lot more activity
with the introduction of Midnight and Bitcoin DeFi. Point number
nine here is the increased usage of L two's. We
have two awesome solutions. We have Mythyl and Hydra that
will help scale up Kardana's transaction layer to the millions
per second and we've seen this with the Hydra Doom

(10:48):
demo and we saw millions of transactions per second pass
through that. Of course, there's a lot of infrastructure that's
needed behind it, and that will come with demand. We
have really cool projects that are in integrading in Hydra
and some other ones that are implementing Mithral as well,
so we will see Bitcoin DeFi actually participate on the
l twos, and as these other platforms such as Delta

(11:12):
DeFi roll out their Hydra implementation of their decks, we'll
see a lot of activity on there as well. So
there'll be a lot of trades going through that and
then rolling it back to the Cadana ecosystem. So these
L twos are definitely going to gain more popularity and usage,
and we're going to see a lot more DAPs etc.
Implementing their hydra solutions. So really cool thing to see

(11:34):
here as well. Now point number ten, this is probably
an obvious one, and I'm seeing in my comments already
people from different ecosystems interested in the midnight air drop
and Bitcoin. DeFi coming into Kadana and exploring what's happening here.
So we're going to have a lot of brand new
newcomers coming in, and of course we need to make
them aware of various scams that maybe are coming around,

(11:58):
educate them on how to use various Cardano DE five protocols,
and show them basically give them a tour of what's available.
There's a lot out there on the Cardano space. It's
a growing and really exciting ecosystem. So hopefully you guys
out there that have been in the Cardano space for
a long time show these guys and girls what's really

(12:19):
good and what's been cooking on the Cardano space. I
know I cover a lot of things in my channel,
and if you're interested in anything in the Cadina ecosystem,
make sure you hit that thumbs up like subscribe notification
bell and I'll keep you guys up to date with
everything that's happening there. But if you're also liking my content,
I am also a Cardano d rep. You can delegate

(12:40):
to my de rep id. I vote on the various
governance proposals out there and help break them down for
you guys. So if you don't understand what's going on,
at least you can check out what I've been looking
into regards to the governance actions so that you can
vote accordingly if you're voting for yourself, But if you
want someone to vote on your behalf, you can delegate
to my d rep profile. I've got the derep IDs

(13:03):
down here, or you can connect your wallet and delegate
directly from my website. And also I want to do
a big shout out to all my channel members as well.
You guys absolutely rock. These are all my channel members
here at the moment. I couldn't make these videos without
you guys. If you're interested in supporting the work that
do links down below to how to learn how to
become a member and help support my coffee addiction too. Now,

(13:26):
the other thing that I've also got here is my
Cadano staatepool. So if you're wanting to support simply by
delegating your aida to a pool and earn some staking rewards,
check out aida oz that's the ticker there, or the
pool id. You can find any of those on any
of your Cadano wallets and start delegating your Aida and
earning those steaking rewards. And of course, if you're delegating

(13:48):
your Aida, you will need to delegate to a de
rep to be able to withdraw those rewards, so you
can do those two things at the same time. The
last thing I mentioned here is you can also listen
to all of these podcasts episodes. I do them all
as YouTube videos, but if you are the type of
person that listens to it in the car or on
the on the road, wherever you might be, you can

(14:08):
listen to it on Spotify, Apple Podcasts, Google podcasts. I
think they closed down Google podcasts, but you know, any
of the popular audio podcast platforms out there. You can
listen to the content I create there as well. All right,
so there's a lot of things to go through there,
but I'm pretty excited about what Bitcoin DeFi and Midnight

(14:28):
have to bring to the Kadana ecosystem. I see a
lot of growth, and I see a lot of potentially
explosive growth with the Kadana ecosystem thanks to these two
big things moving into the space here. If you join
my content, like I said, hit that thumbs up, like, subscribe,
notification bell, lots of links and whatnot down in the
show notes below. You can also check out my website

(14:50):
Learnkardana dot io. I'll see you guys in the next video.