The first Cardano-powered crypto lending platform Aada Finance (V1), is set to be launched on Sept. 13, 2022. The announcement was made by Input Output, the organization in charge of Cardano’s research and development.
For the purpose of streamlining the borrower and lender experiences, Aada Finance uses a novel DeFi primitive known as NFT bonds. The venture’s agreement states that communication with the crypto group about the venture began around October 2021. In May 2022, the Cardano testnet saw the initial release of the decentralized application. Before they are implemented on the mainnet, brand-new functions are tested on this parallel blockchain.
Cardano’s upcoming Vasil hard fork project saw 13,003 commits in June 2022 as developers prepared their code to handle new functionality. The number of wallets increased by 1.8% to 3.4 million during the same period, demonstrating the investors’ confidence in the ecosystem. The number of transactions in the community increased to 44 million as usage increased 5.4% from the previous month.
Another metric that bears relevance is the total value locked. According to DeFi Llama, the total value locked in decentralized protocols on Cardano peaked at $192.35M and has since decreased to less than $81M. The introduction of Aada Finance could boost TVL, given that earlier excess coincided with the influx of decentralized functions like SundaeSwap (SUNDAE), Minswap (MIN), MuesliSwap (MILK), ADAX Pro (ADAX), and VyFinance (VYFI).
Recently, Aada and Minswap partnered to help liquidate loans when the loan-to-collateral value falls to a certain level. The liquidity of Minswap could be applied to the liquidation process. The mainnet performance of Aada Finance is essential to the protocol’s success.