By providing a layer for instant loan approval the ADALend protocol hopes to power the foundational new wave of flexible financial markets on Cardano.
ADALend: A new wave of Cardano DeFi loans?
ADALend is developing a scalable and decentralized lending protocol that is governed by the Cardano community.
Cardano is a market leader in PoS (Proof of Stake) as a set of protocols that provide economic assistance to billions of people, with minimal impact on the environment.
By providing a layer for instant loan approval, automated collateral, trustless custody, and liquidity, the ADALend protocol will power the foundational new wave of flexible financial markets.
Cardano and DeFi
By establishing decentralized financial products, Cardano aspires to be the world’s financial operating system. Cardano ADA is the market leader in PoS as a set of protocols that provide economic assistance to billions of people.
What are the advantages?
- Permission-less
Make a loan to any pair. ADALend governance will ensure that only the safest oracles are used and that the best offers are available.
- Liquidity Incentives
Liquidity is predicated on each pool having enough assets to facilitate lending. This requirement is met by ADALend by incentivizing users to deposit assets and provide liquidity.
- Governance in the Community
Token holders can reach an agreement by voting on governance proposals or submitting new proposals for a vote.
- The Foundation Layer of the Ecosystem
Attract assets and create incentives to support an ecosystem of financial products.
- Secure
Cardano is a proof-of-stake protocol with mathematically proven security. Security is critical in the crypto sector, given the increased number of cyberattacks.
- Academic support
Cardano has the advantage of being one of the few coins that has been reviewed by academics, who have largely praised it.
- Multi-Layer
By implementing a settlement and a computational layer, Cardano ensures infinite scalability and quick transactions.
Blockchain Technology: Generation 3
Cardano is regarded as more reliable than other cryptocurrencies because ADA continues to overcome challenges that other platforms have encountered. Although Cardano has been criticized recently for taking too long to roll out smart contracts and then locking many of those contracts once they were rolled out.
An oversubscribed seed round
The ADALend seed round was 400% oversubscribed, reflecting the huge demand for high quality Cardano native DeFi projects.
However, Cardano stock actually tanked after the smart contracts release, so perhaps the enthusiasm surrounding ADALend was more than the market could bear.
Still, those who did not make it into the seed stage have been whitelisted for the private sale, assuming they still want in based on Cardano’s recent drop.
Final thoughts
Seven private investors paid $540,000 for the entire seed allocation of 1.8 million Cardano native ADAL tokens. The fact that only 7 investors own the entire allocation doesn’t exactly scream decentralization. In fact, it raises some red flags.
The ADALend project was hoping for a jump start with the release of Cardano smart contracts and that jump has yet to be realized. For now, Cardano continues to drop in value. Keep an eye out for more.
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Jay Speakman is a technology writer based in San Francisco, California. He writes on the topics of blockchain, cryptocurrency, DeFi and other disruptive technologies. Clients include Avalanche, Be[in]Crypto, Trust Machines and several blogs devoted to blockchain gaming. He will not rest until fiat currency is defeated.
