Pogun, a new platform built by Input Output Group's (IOG) Omer Husain, is launching a credit and liquidity layer for Bitcoin on the Cardano network. The project aims to transform idle Bitcoin—a $1.6 trillion asset—into productive on-chain capital, addressing what Husain calls a 'destination problem' for BTC.
Pogun's core offering is an oracle-free, non-margin credit market, which the team describes as the first of its kind on any Layer 1 blockchain. Unlike traditional DeFi lending where short-term volatility can trigger liquidations, Pogun's model ensures that a borrower's collateral is only at risk in the event of an actual default, mirroring real-world credit markets. Borrowers and lenders can negotiate loan parameters, which are then enforced by smart contracts. Active loan positions will be represented as native assets through transferable bond tokens, creating a secondary debt market on Cardano.
The platform's roadmap is structured in three phases for 2026. In Q2, Pogun will launch its fully on-chain, oracle-free lending market. Q3 will see the release of a yield dApp that deploys on top of the credit market, allowing users to earn returns without manual negotiation while the platform matches capital with the live loan book. In Q4, a trust-minimized Bitcoin bridge, powered by BitVM, will go live. The bridge is designed to remain secure as long as one honest operator exists. Husain explained the sequencing: '...by the time it launches, there’s already a working credit market and a yield layer, so there’s Day 1 utility.'
Charles Hoskinson, Cardano's founder, has also outlined a broader Bitcoin DeFi integration strategy that positions Pogun as a key component. According to Hoskinson, every transaction within this system will require ADA for fees, even if users do not directly see it, which could drive consistent demand for ADA across multiple applications. He highlighted Midnight as a dedicated privacy layer that enables secure coordination for Bitcoin users interacting with decentralized applications on Cardano.
Pogun's team believes Cardano's EUTXO model, which shares a direct architectural lineage with Bitcoin's UTxO model, makes it the ideal network for Bitcoin DeFi. Pagun is seeking 12.3 million ADA (roughly $3 million) from the Cardano treasury, with a plan to repay 20% of its income until the loan is fully repaid, followed by 5% thereafter. The project builds on earlier Cardano Bitcoin DeFi initiatives, such as Hoskinson's launched Cardinal protocol.
