The Cardano community functionally has a need to coordinate and collaborate on standards, but the way the platform makes those standards surface is a little bit opaque. As new DeFi protocols sprout on Cardano, diverse solutions to similar problems will lead to incompatibilities. The Cardano Improvement Proposals (CIP) platform has been created for improvement proposals. The platform is managed by the Cardano foundation with the participation from the community and IOHK
The general idea of the Incrypture NFT standard is to make it easy for third parties and wallets to integrate it and make everything seamless and easy. The standard is seamless, easy to use, accepts and is accommodating to all types of tokens that can be introduced to the blockchain.
The importance of a standard in the Cardano blockchain is highlighted by the emergence of new DeFi protocols, which are bound to want to perform certain actions differently. Therefore, the more NFT and DeFi protocols in Cardano, the more chaos.
For instance, if there are different ways to create an NFT, developers and project founders will have a choice to use either available options. It would be hard for a majority to choose just one option when there are many.
A standard allows people to agree on one way to do things or at least a few ways that are suitable for a particular set of problems and then from there you can build the whole ecosystem around the standard.
This is a CIP for structured finance primitives (pooling, trenching and redirection) to help minimize incompatibilities. The proposals being built by this project are Smart Structure Protocols for boosting DeFi which will help guide CIP for structured finance. Structured finance technology expands the universe of lenders and reduces the costs for borrowers in many asset classes by pooling assets together for diversification and redirecting their value tailored to the benefits and risks desired by investors.
To truly realize the potential of a decentralized Cardano, the community was encouraged in the 2021 Summit to start taking over from IOG, Emurgo and CF. This is a step by Incrypture to take Cardano on this journey.
The Team
The team is composed of founders Adil Abdulali and Sean Kim. Abdulali has 10 years’ experience in structuring and trading mortgage and asset backed securities on Wall St and Kim is an application software engineer with 30 years of enterprise-level database design expertise. The advisors are Michael Grossberg and Andrew Chasen.
Grossberg is a Computer science professor in Grove School of Engineering, City University of New York and Founding Co-director of the Master’s in Data Science and Engineering. Chasen on the other hand has 30+ years of creating software for modeling structured finance transactions among other worthy accomplishments.
Budget
Incrypture has requested for $15,000 to be spread out in 10 months. The team will dedicate 1 hour or 5 hours a week to shepherd the CIP for structured products into existence.
Conclusion
There is a need for a structured standard for the DeFi protocols setting up in Cardano to reduce incompatibilities and chaos. A CIP for structured finance primitives will help minimize these challenges as well as work for the borrowers and lenders. The proposal is expected to boost DeFi and guide structured finance, which have both influenced the direction of many blockchain in the past. The current challenges in the Cardano ecosystem have diverse solutions, which will only cause more issues in future if not dealt with early.
This proposal is backed by a team with a lot of experience in different fields. Their collective knowledge can be very instrumental in the outcome of the project. The issue however, is the amount of time that will be required to get this proposal to the market.
Check out the original proposal here.
