Aada Finance on Track to Become First Lending Protocol to Support Cardano Tokens

Cardano has expressed the launch date of the lending and borrowing protocol Aada Finance on the Cardano Blockchain. 

Aada Finance on Track to Become First Lending Protocol to Support Cardano Tokens

The launch of V1 will occur on Sept. 13, 2022, and will check the initial occasion when decentralized finance (DeFi) natives come to the Cardano blockchain, based on the foundation of the Plutus smart contract platform previously presented in the Alonzo hard fork in September 2021.

Aada finance use uses DeFi primitive called NFT bonds to streamline the user experience of borrowing and lending.

According to Adda's Twitter handle engagement with the crypto community about the project began around October 2021 the decentralized app was launched in May 2022 on the Cardano Testnet.  This blockchain serves as a testing environment for new applications before they are deployed on the Mainnet. 

In June 2022, Cardano's upcoming Vasil hard fork project got 13,003 commits as developers arranged their code to deal with new functionality. During a similar period, the number of wallets expanded by 1.8% to 3.4 million, indicating trust in the ecosystem. The number of transactions on the network developed to 44 million, as activity on the network spiked 5.4% compared with the earlier month. Both look good for the progress of Aada Finance.

Another metric that bears significance is the absolute worth locked. At its peak, the total value locked in decentralized protocols on Cardano was $192.35M, which has since dropped to under $81 million, as per DeFi Llama. The presentation of Aada Finance could give TVL a boost since the past high related to the surge of decentralized applications like SundaeSwap (SUNDAE), Minswap (MIN), MuesliSwap (MILK), ADAX Pro (ADAX), and VyFinance (VYFI).

Aada recently entered a partnership with Minswap to assist to help a liquidating loan when a loan collateral value drops to a particular level. Minswap's liquidity will be utilized in the liquidation cycle.

Yet, the protocol's success will rely upon Aada Finance working accurately on the Mainnet.

Two past incidents give cause for concern. Following the launch of Cardano's NFT Marketplace jpg. store in January 2022, the Mainnet experienced congestion that impacted transaction finality time. The launch of SundaeSwap, additionally in January 2022, experienced comparative blockage issues.

Helping Aada out is a new audit of its smart contract code. Blockchain security specialists Vacuumlabs audited Aada Finance's smart contracts in preparation for publication on the Cardano Mainnet. The audit included broad entrance testing with moral hacking to decide risks and potential mitigations.

Cardano's parent company Input Output Global later collaborated with Pezesha, an African fintech company enabling financial institutions to provide liquidity to small to medium businesses. Cardano's role will help simplify regulated borrowing and lending between participants scattered all over the world. 

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