With its version of credit and other DeFi-centric offerings like staking, Aada is helping to further the proposed reach of the Cardano ecosystem.
Decentralized Financing (DeFi) lending and borrowing, Aada announces the sale of its native token, the AADA, which is slated to run from November 16 to January 10, 2022. Aada is an unsecured liquidity market protocol that is one of the first of its kind on the DeFi-focused Cardano blockchain. According to a press release shared with Coinspeaker, the Aada protocol is a fork of the Ethereum-native Aave credit platform with the extensive functions of UTXO and is based on Plutus / Haskell.
Process of lending / borrowing with NFT bonds
Lenders make liquidity available to borrowers via AADA smart contracts in exchange for interest from the borrower, as they interact directly without the involvement of third parties. The Aada protocol forms lender deposits and borrower loans into one form of NFT bond. NFT bonds are a financial innovation that grant the right to transfer a deposit. In the end, this creates a new, decentralized derivative circulation.
Borrowers can acquire assets by pledging collateral without any exchange taking place. For example, borrowers could provide collateral such as USDT 500 in exchange for an ADA loan worth $ 400. The loan is formulated in an NFT transferable bond which entitles the holder to request a deposit upon repayment of the loan.
Protection option
The Aada Protocol opens up new hedge opportunities when users can borrow an asset instead of buying it. In the event of asset depreciation, users can always claim the initial deposit – interest. However, when asset prices rise dramatically, users’ stocks may rise while they forego the deposit.
Users can quickly access stored assets and exchange them between native Cardano tokens, regardless of whether they have assets on the Aada platform.
Aada Protocol: Improving Cardano’s Prospects
The popularity of the Cardano ecosystem has risen and continues to grow after PAB updates as large liquidity is expected to flow through first mover dapps. New use cases supported by a strong and scalable blockchain network are required. With its version of credit and other DeFi-centric offerings like staking, Aada is helping to further the proposed reach of the Cardano ecosystem.
While the Ethereum ecosystem aims to ensure acceptance by individuals and companies through DApps and smart contracts, Cardano aims to network with governments through custom projects in developing countries such as Etiopia, Tanzania. The Aada Protocol contributes to the latter’s proposed change efforts by facilitating global borrowing.
Details on the trade fair launch of the Aada DeFi credit platform
Cardano (PoS) – works by operating and confirming transactions through stake pools (servers), while stake pool operators (SPOs) take care of updating stake pools and manage their fixed margin costs for operation be able. Any Cardano (ADA) holder can join the stake pool – Fair Launch. The forecasted listing price for the tokens is associated with $ 0.50. To receive AADA tokens, anyone can join Aada’s stake pool and freely use their ADA via Daedalus or Yoroi wallets. The public sale is optional and decentralized so anyone can join if they want to participate without sending Cardano from a personal wallet.
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