The Aada Finance V1 lending and borrowing protocol will be launched on Cardano’s mainnet by Aada Finance, the DeFi platform based on the Cardano blockchain.
The launch scheduled for September 13, will signal the introduction of DeFi primitives on Cardano’s mainnet. After months of exposure on the public testnet, the Plutus smart contract platform-based loan and borrowing app is announced.
The DeFi application intends to debut before the highly anticipated Vasil Hard Fork. The group said in a news statement,
“We want to capitalize on the first-mover advantage afforded by the peer-to-peer design of the V1 protocol”
In fact, the team expects the smart contract strategy to mitigate the risks associated with hard fork migration.
More on Aada Finance
Aada Finance is a system for peer-to-peer lending and borrowing, allowing users to get loans and lend their crypto assets. The platform employs NFT bonds in which user deposits and loans are secured.
Since these bonds are not connected with a wallet, they may be redeemed by anybody who supplies the underlying NFT and satisfies the loan requirements. Consequently enhancing the overall efficiency of the procedure for users.
The platform offers a number of use cases, including shorting, hedging, and farming, to its customers. Aada Finance’s plan mentions Aada V2, which is anticipated to debut in the third quarter of 2022 after the implementation of the Vasil Hard Fork.
This version will have pooled lending processes and rapid swaps for collateral and deposits, following the roadmap.
Cardano’s press time total value locked (TVL) was $79.8 million, down more than 75% from its all-time high of $326 million in March, according to data from Defi Llama. Given that the introduction of other decentralized apps, such as Minswap and SundaeSwap, also resulted in an increase in TVL, the launch of Aada Finance V1 might result in an increase in TVL.
In a press statement, the team said, “The event represents an important milestone in the development of the blockchain, which will definitely benefit the whole ecosystem.”