Aada Finance set to be Cardano Mainnet’s first DeFi Protocol

ambcrypto.com:

Aada Finance, the DeFi platform built on the Cardano blockchain, is set to launch the Aada Finance V1 lending and borrowing protocol on Cardano’s mainnet.

The launch, which is slated for 13 September, will mark the debut of DeFi primitives on Cardano’s mainnet. News of the lending and borrowing app, which is built on the Plutus smart contract platform, comes after months of exposure to the public testnet. 

The DeFi app plans to launch ahead of the much-anticipated Vasil Hard Fork. The team said in its press release,

“(We) aim to leverage the first mover advantage thanks to its V1 protocol’s peer to peer approach.”

In fact, the team expects to offset the risks that are involved in hard fork migration, through the smart contract approach.

Aada Finance is a peer-to-peer lending and borrowing protocol, one wherein users can take out loans and lend their crypto-assets. The platform utilizes NFT bonds in which loans and deposits by users are locked.

Since these bonds are not associated with a wallet, they can be redeemed by anyone who provides the underlying NFT and meets the loan conditions. Ergo, making the overall process considerably efficient for users.

The platform provides a variety of use cases for users such as shorting, hedging, and farming. Aada Finance’s roadmap mentions Aada V2, which is expected to launch in Q3 of 2022 after the Vasil Hard Fork is implemented.

As per the roadmap, this version will have pooled lending mechanisms and instant swaps for collateral and deposits.

Data from Defi Llama revealed that Cardano’s press time total value locked (TVL) stood at $79.8 million, down by more than 75% from its all-time high of $326 million in March. The launch of Aada Finance V1 could lead to a surge in TVL, given that the