Aada Finance set to be Cardano Mainnet’s first DeFi Protocol
Aada Finance, the DeFi platform built on the Cardano blockchain, is set to launch the Aada Finance V1 lending and borrowing protocol on Cardano’s mainnet.
The launch, which is slated for 13 September, will mark the debut of DeFi primitives on Cardano’s mainnet. News of the lending and borrowing app, which is built on the Plutus smart contract platform, comes after months of exposure to the public testnet.
The DeFi app plans to launch ahead of the much-anticipated Vasil Hard Fork. The team said in its press release,
“(We) aim to leverage the first mover advantage thanks to its V1 protocol’s peer to peer approach.”
In fact, the team expects to offset the risks that are involved in hard fork migration, through the smart contract approach.
More on Aada Finance
Aada Finance is a peer-to-peer lending and borrowing protocol, one wherein users can take out loans and lend their crypto-assets. The platform utilizes NFT bonds in which loans and deposits by users are locked.
Since these bonds are not associated with a wallet, they can be redeemed by anyone who provides the underlying NFT and meets the loan conditions. Ergo, making the overall process considerably efficient for users.
The platform provides a variety of use cases for users such as shorting, hedging, and farming. Aada Finance’s roadmap mentions Aada V2, which is expected to launch in Q3 of 2022 after the Vasil Hard Fork is implemented.
As per the roadmap, this version will have pooled lending mechanisms and instant swaps for collateral and deposits.
Impact on Cardano
Data from Defi Llama revealed that Cardano’s press time total value locked (TVL) stood at $79.8 million, down by more than 75% from its all-time high of $326 million in March. The launch of Aada Finance V1 could lead to a surge in TVL, given that the introduction of other decentralized applications like Minswap and SundaeSwap led to a spike in TVL as well.
“The event marks a significant milestone in the blockchain’s development, which will surely benefit the entire ecosystem,” the team noted in their press release.
All hands on deck
Given that Aada Finance V1 will be the first lending and borrowing protocol to launch on Cardano’s mainnet, the event is of great significance for the community. Therefore, Aada finance conducted an external audit to ensure the protocol’s safety and seamless operation on the mainnet. The audit was carried out by Vacuumlabs.
Blockchain and smart contracts security experts from Vacuumlabs spent a month combing through Aada Finance V1’s smart contract looking for flaws. The smart contract was subjected to various attacks such as stealing of funds, loss of staking rewards, etc.