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Aada V.1 app is a peer-to-peer lending and borrowing protocol on the Cardano blockchain. It allows users to create liquidity requests and deposits in an order book style. Borrowers can place liquidity requests by setting custom parameters like asset type, amount, collateral, term, and interest. In turn, lenders can fill orders and liquidate them. Liquidity deposits work reversely, whereas lenders can deposit tokens and offer them to borrowers. The initial Aada protocol is a prequel to the V.2 version, which will include a pooled lending mechanism.

Peer-to-Peer (P2P) lending:

Aada Finance delivers an entirely decentralized way of lending and borrowing primitives through P2P interaction. The process allows users to create liquidity requests and lock up ADA or other CNTs approved by the community as collateral. In turn, lenders can choose requests from the list of overcollateralized loans and lend through a smart contract. Liquidity requests and deposits are fully customizable, meaning borrowers and lenders can choose the loan parameters. The latter include Loan token type and size, Collateral token type and size, Loan duration, Interest, and Loan request expiration.

NFT bond:

Every borrower and lender receives a bond token as proof of loan. NFT Bonds are not tied to a wallet address and are freely transferable and tradeable. Ultimately, the beauty of the Aada NFT Bonds comes with their utility: Whoever owns the Bond becomes the loan issuer or receiver.
With the Borrower’s Bond, the user must repay the loan, pay the accrued interest, and receive collateral, whereas, with the Lender’s NFT, the user can claim the lent tokens.
Aada Finance is currently running its V.1 version of the protocol. More information on the V.2 concept and features can be found here:
Last modified 1mo ago