Aada Finance, the DeFi platform built on the Cardano blockchain, is expected to launch the Aada Finance V1 lending and borrowing protocol on the Cardano mainnet.
The launch, scheduled for September 13, will mark the debut of DeFi primitives on the Cardano 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 highly anticipated Vasil Hard Fork. The team said in their press release,
“(We) aim to leverage first-mover advantage through the peer-to-peer approach of its V1 protocol.”
In fact, the team expects to offset the risks associated with the hard fork migration, through the smart contract approach.
Learn more about AadaFinance
Aada Finance is a peer-to-peer lending and borrowing protocol, where users can take out loans and lend their crypto-assets. The platform uses NFT bonds in which user loans and deposits are locked.
Since these bonds are not associated with a wallet, they can be redeemed by anyone providing the underlying NFT and meeting the loan conditions. Ergo, which makes the overall process considerably efficient for users.
The platform provides a variety of use cases for users such as short selling, hedging, and farming. Aada Finances roadmap mentions Aada V2, which is expected to be launched in the third quarter of 2022 after the implementation of Vasil Hard Fork.
In line with the roadmap, this version will have pooled lending mechanisms and instant exchanges for collateral and deposits.
Impact on Cardano
Data from Defi Llama revealed that Cardano’s total press time value locked (TVL) was $79.8 million, down more than 75% from its all-time high of $326 million in March. . The launch of Aada Finance V1 could lead to an increase in TVL, as the introduction of other decentralized applications such as Minswap and SundaeSwap has also led to an increase in TVL.
“The event marks a milestone in the development of blockchain, which will surely benefit the entire ecosystem,” the team noted in its press release.
Everyone on the bridge
Since Aada Finance V1 will be the first lending and borrowing protocol to launch on the Cardano mainnet, the event holds great significance for the community. Therefore, Aada finance conducted an external investigation Audit to ensure the security and transparent operation of the protocol on the mainnet. The audit was carried out by Vacuumlabs.
Blockchain and smart contract security experts at Vacuumlabs spent a month scouring the Aada Finance V1 smart contract for flaws. The smart contract has been subjected to various attacks such as theft of funds, loss of staking rewards, etc.
After performing all the relevant tests and resolving the issues they found, the experts concluded the audit and gave the go-ahead for the launch of Aada Finance V1 mainnet.