Crypto Loans Market Is Shifting to Cardano DeFi Ecosystem, AADA to Overcome AAVE

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With its version of loans and other DeFi-centric offerings like staking, Aada is helping to promote the Cardano ecosystem’s proposed reach.

Decentralized Finance (DeFi) lending and borrowing, Aada is announcing the sale of its native token, the AADA, scheduled to span between November 16th to January 10th, 2022. Aada is a non-custodial liquidity market protocol ranking as one of the first of its kind on the DeFi focused Cardano blockchain. Per a press release shared with Coinspeaker, the Aada protocol is a fork of the Ethereum-native Aave lending platform with UTXO’s extensive features and built on top of the Plutus/Haskell.

Process of Lending/Borrowing Using NFT-Bonds

Lenders provide liquidity to borrowers via AADA smart contracts in exchange for interest from the borrower, as they interact directly without the involvement of any third parties. Aada protocol forms Lenders deposit and Borrowers Loan into a form of NFT-bond. NFT-bonds are a financial innovation that allows the transfer right to claim a deposit. This at the end creates new decentralized derivatives circulation.

Borrowers can obtain assets by pledging collateral assets, with no exchange taking place. For example, borrowers could provide collateral, such as 500 USDT, in exchange for a loan of $400 worth of ADA. The loan is formulated into a transferable NFT-bond which gives the right to claim a deposit if the loan is provided back.

Hedging Opportunity

Aada protocol opens new hedging opportunities when users can borrow an asset instead of purchasing it. In the case of asset depreciation, users will always be able to claim initial deposit – interests. While if asset prices increase drastically users holdings have the potential to increase while forgoing the deposit.

Users will be able to quickly access and swap deposited assets between Cardano native tokens whether they have assets on Aada platform.

Aada Protocol: Boosting Cardano’s Prospects

Cardano ecosystem’s growth in popularity has risen and is up to drive after PAB updates, expecting large liquidity moving across first-mover Dapps, new use cases that are 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 Etiopia, Tanzania. The Aada protocol contributes to the latter’s proposed change pursuits by making it easier to obtain loans worldwide.

Fair Launch Details of the Aada DeFi Lending Platform

Cardano (PoS) – works by operating and confirming transactions by Stake Pools (servers), meanwhile, Stake Pool Operators (SPOs) take care of updating Stake Pools and can manage their fixed margin cost for operating. Stake Pool can be joined by any Cardano (ADA) holder – Fair Launch. The projected exchange listing price for the tokens is pegged at $0.50. In order to receive AADA Token anyone can join Aada’s Stake Pool and freely stake their ADA through Daedalus or Yoroi wallets. The Public Sale is optional and decentralized so anyone can join if wish to stake, without sending out Cardano from a personal wallet.


Andy Watson

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