Blockchain technology is changing how people interact with the financial world. The concept of decentralized finance, or DeFi, has rapidly gained popularity as a way for users to participate in financial services by interacting with smart contracts on blockchains.
Cardano and Avalanche, two powerful blockchains, offer an innovative form of DeFi protocol that can create massive opportunities for users to earn passive income and become more financially independent.
ADA Finance is giving DeFi enthusiasts the ability to participate in DeFi without switching wallets between multiple platforms, and it’s proving to be a significant gamechanger for the world of blockchain-secured peer-to-peer finance.
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.
Peer-to-Peer Borrowing and Lending Smart Contracts
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.
Yield Farming with Liquidity Provider (LP) Tokens
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.
IDO Launchpad
In the cryptocurrency world, new projects typically have the greatest upside for tokens. Moreover, new projects often require funding in order to expand their operations and provide the best services possible.
An IDO Launchpad is an ingenious way for users to connect with new projects and gain exposure to new tokens with incredible value potential. ADA Finance, which will operate on both Cardano and Avalanche, will be a prime location for companies seeking funding on each blockchain as well as for users to access promising tokens early on.
ADA Finance Wins Best DeFi Projects 2021
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.
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Author
Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
