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FAQ
The following section will gather some of the frequently asked questions we receive in our Telegram and Discord channels.
1) What utility does the AADA token have?
  1. 1.
    Users can use AADA for collateral and interest in V1.
  2. 2.
    AADA grants voting power in the Aada DAO.
  3. 3.
    Holders can provide liquidity and farm AADA, ADA, and MIN rewards on Minswap.
  4. 4.
    Farming on Wingriders. Additional utility to be introduced with V2:
  5. 5.
    Users will be able to earn AADA rewards by staking their AADA in the Safety Module.
  6. 6.
    Stakers will be eligible for a % of the tx fees.
2) Where can I see my total ISPO reward allocation?
You can view your total ISPO reward allocation by pasting your StakeKey here.
3) Where can I claim my ISPO rewards?
You can claim your ISPO rewards on tosidrop.io. You can learn more about the distribution here.
4) Can I wait for my ISPO rewards to accumulate and claim them all at once?
Yes. You can claim your ISPO rewards in one transaction (~0.87 ADA) by 28 May 2023.
5) When will you enable staking?
Staking will be available in the V2 Safety Module.
6) How will the liquidation oracle work in V1?
Lenders will be able to manually liquidate loans if the collateral value drops below the 110-125% range. For more information, read our Liquidation oracle guide.
7) Can I cancel my loan request?
Yes, you can.
8) When can I cancel my loan request?
You can cancel your loan request anytime before it gets supplied by a lender.
9) How much does it cost to cancel a loan request?
Canceling a loan request triggers a standard network transaction that charges fees of around 1 ADA.
10) How do I cancel my loan request?
Canceling a loan requires the borrower to provide the underlying NFT bond, which is mandatory to execute the transaction.
11) Can someone else cancel my loan?
The loan can be canceled by whoever holds the borrower’s NFT. The same person is also eligible to claim the collateral.
12) How to claim collateral from a liquidated loan?
When the Health factor reaches the liquidation threshold, the user can claim a portion of the liquidated collateral. The claimable amount depends on the Health factor during the loan liquidation.
13) Liquidation commission (1.6% of the Collateral)
In the event of Oracle liquidation (e.g., the Health Factor has dropped to 1 or below 1), the Lender pays a Liquidation commission (1.6% of the Collateral). The Oracle gives the Lender only part of the Collateral to cover the loan + 1.6% as commission.
14) Oracle fee (1.6 ADA)
The Oracle fee is a Liquidation fee rewarded to the nodes (1.6 ADA is split between nodes) for signing and verifying each transaction.
15) The loan counter starts 30 minutes after providing the loan
The Lender is given a 30-minute advance to sign the transaction before the Loan expiration time. After successfully funding the loan, the loan timer activates and begins the countdown.
16) Oracle liquidation (the Borrower does not lose the entire Collateral) When the user triggers Oracle liquidation (e.g., when the Health Factor has dropped to 1 or below 1) and claims the Collateral, the amount to be received is calculated by the Oracle.
Collateral_for_lender_in_ada=(loan_value_in_ada+interest_value_in_ada)+collateral_value_in_ada
Collateral_for_borrower_in_ada=all_collateral_in_ada - (loan_value_in_ada+interest_value_in_ada)
17) Liquidation due to loan maturity (the Borrower loses the entire Collateral)
When the Loan term matures, the Lender can liquidate the loan and claim the entire Collateral. Borrowers must repay their loans in time to avoid losing their Collateral.
18) Repaying a loan earlier results in paying smaller interest which does not cover TX fees.
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