Source : coinspeaker.com
ADA Finance is building a home on both Cardano and Avalanche in order to make passive income through DeFi a much less active experience requiring the jump from protocol to protocol and chain to chain.
Decentralized finance (DeFi) is becoming one of the most popular blockchain use cases to date. The total value locked (TVL) in DeFi smart contracts is racing towards $300 billion as 2021 comes to a close, and the year has seen massive growth in the sector of peer-to-peer finance powered by secure, transparent, and immutable blockchain technology.
A wide range of DeFi services has been developed over the industry’s short history. Many of these services replicate those found in traditional finance (TradFi), and by transferring these services to the blockchain, the need for middlemen and intermediaries has been made redundant while the yields and rewards for participants have increased to levels unheard of in TradFi.
Additionally, by creating a financial system based on code and decentralized applications (dApps), new innovations in financial services, unlike anything found in TradFi, such as yield farming, have emerged as popular ways for users to participate in DeFi. However, with so many services offered from so many different DeFi protocols, this new financial system can be a challenge for newcomers to navigate.
Decentralized Finance Has Matured across Multiple Chains
DeFi protocols really began taking off on the Ethereum blockchain over the summer of 2020. Before 2020, there were less than a billion dollars accounted for in DeFi’s TVL. After DeFi Summer, tens of billions of dollars were pouring into DeFi, but the Ethereum network began to suffer from congestion as around 95% of all DeFi transactions were validated through Ethereum.
The price of ETH, the token used to pay for transactions on Ethereum, also began to rise. As congestion rose on Ethereum’s main network, the amount of ETH necessary to complete transactions rose in lockstep, and this situation led to Ethereum becoming a very expensive system to use for participating in DeFi.
The cost of transactions soon became so high, that many participants in the DeFi community began looking at other blockchains in order to escape the fees that were eating into profits. Today, there are dozens of blockchains hosting DeFi protocols, and a few are growing their TVL at a rapid pace due to their low cost for transactions compared with Ethereum.
Consequently, the DeFi landscape has increased in complexity and reduced the quality of user experience through the diaspora of multiple services now offered over a multitude of blockchains. If the DeFi community hopes to fulfill its goal of capturing a larger portion of the financial market from TradFi, it will most likely need to begin reducing the complications brought about by all these services spread out over so many blockchains.
ADA Finance Creates a One-Stop DeFi Suite across Cardano and Avalanche
Smart contracts are the foundation for building DeFi services on a blockchain. Cardano, one of the most peer-reviewed blockchains ever developed, recently launched smart contract capabilities with the network’s Alonzo hard fork. This long-anticipated upgrade may make Cardano the premier home for DeFi at high speeds and low cost.
Another network that has taken prominence in recent months, Avalanche, has become one of the Top 5 blockchains measured in TVL, and it has also been touted as one of the major chains to compete with Ethereum at affordable transaction costs and short wait times for transaction finalization.
ADA Finance, a DeFi protocol offering a suite of DeFi services in one place, is building a home on both Cardano and Avalanche in order to make passive income through DeFi a much less active experience requiring the jump from protocol to protocol and chain to chain. ADA Finance provides opportunities for users to access a growing ecosystem of DeFi products in one place, while users still have the ability to participate in these services on two stellar blockchains of their choosing.
ADA Finance Is Winning Awards and Awarding Tokens to Users
The utility ADA Finance is bringing to DeFi has not gone unnoticed. The AIBC Summit, considered one of the largest blockchain summits in Europe, has nominated ADA Finance for an award as the “Best DeFi Project of the Year.” ADA Finance has been nominated along with five other outstanding DeFi projects deserving of the award for best project this year, and the winner will be announced on November 16th.
In an unrelated event, ADA Finance has decided to reward users with $5,000 through a generous airdrop campaign. The $ADAFI airdrop will award 100 users who perform specific tasks in order to gain eligibility, and the growing project has attracted a large following of support on Twitter which ADA Finance should be able to leverage into a bright future as the protocol’s roadmap towards uniting a plethora of DeFi services under one name surges forth.
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