to leave a comment.
▲ Cardano (ADA)/AI generated image
The CEO of Flare (FLR) has publicly criticized the DeFi (Decentralized Finance) performance of Cardano (ADA), intensifying the competition for leadership in Bitcoin-based DeFi. Flare claims to have surpassed Cardano in Total Value Locked (TVL) despite starting later, putting forward a strategy to build a single interoperable DeFi layer.
The Crypto Basic reported on May 6th that Hugo Philion, CEO of Flare Network, criticized Cardano for underperforming in the DeFi sector despite its early start. Philion pointed out that Cardano entered the market in 2017 and Flare launched six years later in January 2023, but Cardano failed to convert its first-mover advantage into DeFi leadership.
Philion claimed that Cardano attempted to replicate Flare's DeFi strategy but failed. Citing DeFiLlama on-chain data, he revealed that Flare's Total Value Locked (TVL) is approximately $159 million, surpassing Cardano's approximately $131 million. Philion emphasized that these figures demonstrate the performance gap between the two networks in DeFi.
These remarks came after Cardano founder Charles Hoskinson unveiled his vision for Bitcoin (BTC)-based DeFi. Hoskinson proposed that Cardano's smart contract infrastructure could be used to provide programmable functionality to potential US Bitcoin reserve assets. He also mentioned that this vision could extend to institutional assets held by BlackRock and major corporations.
Philion dismissed the possibility of Cardano becoming the leading platform for Bitcoin-based DeFi. He stated that Flare would gain an advantage by building an integrated DeFi layer that supports FXRP, FBTC, FXLM, real-world assets, and stablecoins within a single interoperable system. Through this, Flare is pursuing a strategy to become a central hub for cross-chain liquidity and yield generation.
Flare explained that it has already made progress through its FXRP initiative. Currently, approximately 154 million XRP are locked on Flare, and users are minting equivalent FXRP. Of these, about 140 million FXRP are deployed in DeFi protocols, generating returns for participants. Cardano is also expanding its own strategy with a non-custodial collateral model and its first Bitcoin DeFi protocol, Cardinal, with XRP support remaining on its future roadmap.
*Disclaimer: This article is for informational purposes only and does not constitute investment advice. We are not responsible for any investment losses incurred based on this information. The content should be interpreted solely for informational purposes.*
Newsletter
Get key news delivered to your email every morning
to leave a comment.