AADA finance aims to leverage the power of Decentralized Finance(DeFi) to build the first lending and borrowing protocol on the Cardano blockchain.
The protocol utilizes NFT-bonds to establish the relationship between borrowers and lenders. These NFTs are treated as securities that can be used to claim a deposit. As lenders deposit crypto assets on the platform, AADA mints NFT-bonds as a proof of deposit. This also facilitates ownership transfer of the bonds whereby the holder of NFT reserves the right to claim the deposit. The same mechanism is also applied to borrowers; however, the NFT bonds represent a loan and a deposit (collateral). Borrowers can only retrieve their deposits only if the loan is returned.
Loans issued on AADA finance should maintain a health factor above 1 at all times to avoid liquidation events. The health factor could fall below 1 if the value of a collateral falls below the loaned amount. Details of the health factor of a loan can be found in AADA finance’s whitepaper, linked here. If a liquidation event is triggered, the NFT will be rendered inactive and the deposit cannot be reclaimed. Chainlink and Charli3 will function as price oracles on AADA platform to provide the necessary data for the calculation of health factors while a liquidation oracle system then identifies loans and collaterals that have been liquidated. Additionally, the team is building a native fallback price oracle.
$AADA token holders and stakers will play a critical role in governance as they will be able to vote on proposals that determine the direction and growth of the platform.As the platform’s success is highly dependent on liquidity, votes cast by liquidity providers will also carry a substantial weight. To future incentivize users to stake their tokens, AADA finance has established the Safety Module to protect the protocol and stakers against smart contract exploits, liquidity risks and oracle system malfunctions. In addition to platform fees, users who stake within the Safety Module are eligible for Safety Incentives that are distributed quarterly.
AADA Finance brings a new element to the ever evolving DeFi space with the introduction of NFT-bonds. This partnership enables our users to access the AADA platform and its all its service offerings natively on GeroWallet. With the recently deployed NFT support, users can conveniently store their NFT-bonds securely on GeroWallet.
In our efforts to provide the most comprehensive DeFi experience, GeroWallet has formed partnerships with multiple crypto lending and borrowing protocols, each with its own unique service offering. Our goal is to offer users a variety of platforms to choose from and allow them to utilize the ones that fit their needs. With that, we are proud to have AADA Finance as a partner in our fast growing ecosystem.
Our users are our motivation. We are committed to building a dynamic environment for the advancement of blockchain by designing innovative, user-friendly tools for the DeFi community. Our promise is to continuously strive to provide accessibility to all through an intuitive user experience.
About AADA Finance
AADA Finance is a crypto assets lending platform built on the Cardano blockchain. The platform uses a pooled lending protocol to make assets more readily available and to provide a seamless lending and borrowing process. Users are able to deposit assets to earn a yield, obtain a loan (overcollateralized and undercollateralized) and swap deposited assets. By building on Cardano, the platform will also be able to offer extremely low transaction fees.