Aada Finance V2 Protocol
Aada V2 is a liquidity protocol that allows depositors to create their liquidity pools and earn interest in an open-market style. Every liquidity pool owner mints a Pool Manager NFT that enables staking the pooled ADA to an SPO. The acquired stake in every LP becomes tradeable, encouraging non-custodial pool owners to market them and promote protocol growth.
On the other hand, borrowers benefit from more flexible funding options with better fund management. They can take multiple loans, each with a fixed interest rate, and enjoy a more efficient utilization of their assets than traditional pools. Ultimately, the following model gives borrowers better risk management while lenders earn risk-free staking rewards on the pooled ADA.
Every borrower receives a bond token as proof of loan. NFT Bonds are not tied to a wallet address and are freely transferable and tradeable. With the Borrower’s Bond, the user must repay the loan and pay the accrued interest to redeem the collateral.
Borrower NFT Bond
LP tokens represent a share of the pool in which the user has a deposit. Since the pool datum keeps track of the total number of LP tokens, it can validate that the LPs correspond to a certain amount of the pool share.