Aada is a decentralized non-custodial liquidity market protocol. Aada is one of the first lending protocols built on top of Plutus/Haskell Cardano smart contracts. Platform users can engage as depositors or borrowers in a decentralized non-custodial liquidity market protocol. Depositors receive a passive income by providing liquidity to the market, while borrowers can borrow with over-collateralization or under collateralization (a.k.a flash loans). —
Lenders provide liquidity for borrowers on AADA smart contracts for such actions. They receive interest from the borrower as they interact directly without any third parties. There is one risk for liquidity providers in shortfall events (smart contract exploit): up to 30% of their assets can be taken to cover the exploit losses.
Borrowers can borrow assets by providing collateral assets in such a way no transaction is done. Borrowers provide collateral, for example of 500 USDT and get a loan, for example of 200ADA. If the loan price goes up, there is a liquidation line when the loan reaches 85% worth of the collateral and is liquidated, and the borrower keeps his loan. In a downfall event, when the borrower's assets go down in price, he can return his loan and receive his locked collateral so he doesn't lose any money.
Users will quickly access and swap deposited assets between Cardano native tokens by having assets on the Aada platform.
Aada is the first lending/borrowing project that implements NFT Bond use into financial action.
Aada.Finance has brought an idea of NFT Bond into the lend/borrow process. Instead of users locking their assets into smart contracts, they will be locking them into NFT Bonds.
NFT Bond example and its pros
Let's look at the example of how NFT Bond is created. The user puts a coin into a vending machine which is a smart contract, and the outcome is programmed if criteria are met. So instead of providing collateral and getting a loan, the user will get a loan and NFT Bond which is like a "debit note," the NFT Bond is tradeable, transferable, has a price of itself, and can be used to hedge.
This NFT Bond feature outperforms AAVE in any way; it's more decentralized, more transparent, more transferable and - AADA Lending has a fair launch offering as Cardano (ADA) Blockchain Stake Pool Operator - SPO, any Cardano blockchain supporter can validate Cardano PoS blockchain and receive AADA Tokens.
The Aada Protocol champions the Cardano Potentials
As the blockchain ecosystem grows in popularity, new use cases backed by a strong and scalable blockchain network are required. With its version of loans and other DeFi-centric offerings like staking, Aada is helping to promote the Cardano ecosystem's proposed reach.
While the Ethereum ecosystem aims to cater to private and enterprise adoption through DApps and smart contracts, Cardano aims to engraft with governments through custom projects in developing countries like Tanzania. The Aada protocol contributes to the latter's proposed change pursuits by making it easier to obtain loans.
Twitter | Telegram
Release ID: 89054551