$ADA: Cardano-powered crypto lending platform Aada Finance prepares for mainnet launch

On Wednesday, August 31, Cardano-powered crypto lending startup Aada Finance announced that it will launch the Aada Finance V1 lending and borrowing protocol on the Cardano mainnet on September 13.

The team’s press release, which was posted on Cointelegraph earlier today, went on to say:

After months of public testnet, Aada Finance is finally ready to roll out its highly anticipated app. The release brings lending and borrowing to Cardano, introducing decentralized finance (DeFi) primitives to the network for the first time. The event marks a milestone in the development of blockchain, which will surely benefit the entire ecosystem.

Aada Finance plans to launch in anticipation of the Vasil hard fork, which will update the Cardano network. The team aims to leverage first-mover advantage through the peer-to-peer approach of its V1 protocol. While providing a simple and effective solution, the smart contract concept will mitigate future risks associated with hard fork migration.

Here is an overview of how Aada Finance works:

The Aada V.1 application is a peer-to-peer lending and borrowing protocol on the Cardano blockchain. It brings lending and borrowing financial activity to the blockchain. Users can submit a loan request and lend assets in an order book style. Borrowers can ask questions by setting custom parameters, such as asset type, amount, collateral, term, and interest. In turn, lenders can choose whether or not to fill the orders and liquidate them if necessary. The Aada V.2 version will include a group lending mechanism…

This lending method disables the intermediary role. But not completely. The borrower configures the loan application and there he controls all loan data. The collateral is locked into a smart contract. The lender must accept the loan request that has been defined and send the loan to the borrower through the tx configuration of Aada…

The borrower and lender receive the B and L tokens. These tokens are the only proof of loan, they are not attached to a wallet, which means they can be transferable or exchangeable. The beauty of these Aada NFT bonds comes with its usefulness. Those who owe the obligation to the lender can redeem the loan and the interest after the loan expires. With the borrower’s surety, you must repay the loan, pay interest, and then you will receive collateral in return.

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