Blockchain technology is disrupting the way people interact with the financial world. Decentralized finance, or DeFi, has quickly become a popular way for users to participate in financial services by interacting with smart contracts written on blockchains.
Two powerful blockchains, Cardano and Avalanche, are host to an innovative kind of DeFi protocol that promises to bring massive opportunities for users to gain passive income and increase their financial independence.
ADA Finance is creating a home for DeFi enthusiasts to participate in DeFi without having to switch their wallets between multiple platforms, and this is proving to be a major gamechanger in the world of blockchain-secured peer-to-peer financial services.
A Primer on ADA Finance’s Umbrella DeFi Services
ADA Finance is an ecosystem of DeFi products that will include borrowing and lending, yield farming, margin trading, and an IDO launchpad.
The protocol will operate as a decentralized autonomous organization (DAO), which means the users who hold ADAFI, ADA Finance’s native token, will be given various levels of control over the protocol and earn rewards accordingly. There will be three levels of DAO membership, each in accordance with how many tokens a user has staked within the DAO.
Additionally, ADA Finance is one of the first DeFi platforms to develop a referral and address milestones reward program, which provides a huge incentive for its users to take advantage of all the services the protocol has to offer as well as introduce others to the DeFi solutions ADA Finance has to offer.
Borrowing & Lending
ADA Finance provides peer-to-peer lending through its proprietary and innovative smart contracts. By placing loan ask orders on ADA Finance, users are able to customize their requested daily interest rate (up to 2% daily) and can determine the maximum duration of the lending contract on offer.
ADA Finance’s lending smart contracts allow borrowers to pay back their loan at any time before their due date in order to pay as little interest as possible.
To incentivize users to provide liquidity for tokens, ADA Finance will introduce yield farming for pairing tokens and depositing them within the ADA Finance AMM (Automatic Market Maker). When a user provides liquidity to ADA Finance’s AMM, they receive an LP token (Liquidity Provider token) that accrues fees earned from other users who make swaps using their tokens.
When this LP token is deposited into one of ADA Finance’s yield farms, users are rewarded a fair proportion of rewards tokens from a fixed rewards pool based on their share of deposited liquidity. During the time a user’s LP tokens are deposited in the farming smart contract, they will still receive fees from swaps on top of the rewards from the farming contract
Margin Trading on ADAFi Swap
ADA Finance also provides a secure and transparent platform for people to execute trades on margin. Margin Trading will only be available for assets that support a decentralized price feed, as liquidations on margin trades are triggered through oracles that feed information to the ADA Finances smart contracts.
To keep leveraged positions open, traders will be required to hold a minimum 105% of the value of the position as collateral. If this minimum collateral is not met, a user’s position will be liquidated. As for cross margin, any deposits, withdrawals, and trades can impact a user’s collateralization level and thus their liquidation level.
New projects usually have the greatest upside for token value in all of crypto. What’s more, new projects usually need funding in order to expand their operations and provide the best services possible.
An IDO launchpad is an ingenious way of uniting users with new projects and giving these users exposure to new tokens with incredible potential for gaining value. ADA Finance, situated on both Cardano and Avalanche, will be a prime location for new projects on each blockchain to seek funding as well as for users to get in early on promising tokens.
ADA Finance Named Top Project of The Year
ADA Finance has the honor of being nominated for one of the best DeFi projects in 2021. The AIBC Summit, which will be held on November 16th, will choose between six nominees who have all been selected for “Best DeFi Project of the Year.”
The AIBC Summit is considered the largest blockchain summit in Europe, and ADA Finance joins a long list of prominent names in crypto who will be recognized for their contributions to DeFi and the blockchain space. The NFT artist, Beeple, who gained acclaim for selling one work of NFT art for $69 million is also nominated for an award at the same event.
ADA Finance has a well-defined roadmap that includes a plethora of services that will be offered as the team continues development. Users interested in participating in DeFi on Cardano or Avalanche will have a multitude of services to choose from as ADA Finance continues to develop into the future.