ICON is emerging as a serious contender in the decentralized finance segment. The recent partnership between ICON Hyperconnect and YDragon will see the establishment of a cross-chain DeFi index.
Although it has flown under the radar a bit, the ICON blockchain is home to a growing set of DeFi projects, protocols, and services. This growth dates back to late 2020 when Orbit Bridge brought Ethereum blockchain assets to ICON. There are multiple reasons why people want to explore this ecosystem, resulting in a much higher overall transaction count than the network had seen prior.
Several DeFi projects on the ICON blockchain bring advantages to the ecosystem, such as arbitrage, token proliferation - through the IRC-2 token standard - and so forth. Furthermore, as many transactions occur within the DeFi ecosystem, ICON has tremendous potential for overall ecosystem growth.
The discoverability of promising DeFi projects remains a challenge on any blockchain. Finding the right solution one needs can be challenging, with so many different ecosystems and protocols competing for traction. YDragon's team, together with ICON Hyperconnect, will solve that problem by establishing a cross-chain DeFi index for the ICON ecosystem. This index will provide a better overview of what is available to users and which opportunities may prove worthwhile to explore. The index can lead to new insights and discovery of projects they may not have been aware of prior for yield farmers.
At its core, YDragon serves as a cross-chain index ecosystem with yield-bearing collateral. Through this solution, users can gain exposure to a variety of decentralized finance services and protocols across different blockchains. A native smart revenue-generating protocol manages all underlying assets to ensure users gain diversified exposure and optimize their yield farming efforts.
By enabling support for the ICON blockchain and its DeFi suite, YDragon further expands the list of available offerings for its users. Every blockchain ecosystem can be home to worthwhile decentralized finance projects and protocols. Finding out about them and comparing their potential return with other solutions is crucial for yield farmers to be better positioned to make well-informed decisions.
Furthermore, this partnership can prove beneficial to developers looking to bring DeFi to ICON. The ICON blockchain is scalable and has compatibility with Bitcoin, Ethereum, and other traditional blockchains.
Additionally, the advent of DeFi brings more utility to ICON's native ICX token through staking and other solutions, confirming the ecosystem is still growing rapidly. Competition across different blockchains is healthy and will ultimately benefit all DeFi enthusiasts globally.
For yield farmers, it is pertinent to have a comprehensive overview of all the options they can explore. Adding support for more blockchains, as YDragon does, will help create that overview. Moreover, it allows users to compare the different options and determine which yield farming option will be best for them. Diversified exposure is crucial in cryptocurrency and is worth pursuing at all times.
About ICON Hyperconnect
ICON Hyperconnect is an ICON public representative actively pushing for global business development, expanding ICON’s network and undertaking research and education initiatives to grow the ICON community. We are pleased to work with them on this front to expand the overall ecosystem and bridge more participants.
YDragon is a cross-chain index ecosystem with yield-bearing collateral, allowing users to gain exposure to different DeFi niches across a multi-chain environment with a smart revenue generating protocol managing underlying assets.
Not only do investors get diversified exposure to the best of what’s offered on a selection of blockchains, but they also have the luxury of benefiting from the most trusted and lucrative yield farming protocols around, ensuring a passive income on their investment.