Kriptoks

Aada Finance is a decentralized lending and borrowing protocol built on the Cardano blockchain. Founded in 2021 by Rytis and Mantas Andriuska, Aada Finance revolutionizes DeFi by introducing the NFT bond feature that allows users to transfer and trade their loans in the form of NFTs. With multi-asset peer-to-peer primitives, the protocol enables lenders and borrowers to borrow Cardano-native assets (CNTs) and earn interest by supplying loans.

NFT Bonds: Aada's Unique Feature

Aada Finance is the first protocol to introduce the NFT bond feature, which tokenizes all loans and requests into NFTs. This practical feature allows lenders and borrowers to transfer and trade their loans. Whenever a user places a loan request or supplies one, the protocol mints an NFT with a unique policy that serves as proof. Any loan repayment, liquidation, or interest claim can be triggered only provided the underlying B (borrower) or L (lender) NFT.

Multi-Asset Lending and Borrowing: Aada's Innovation

Aada Finance's multi-asset parameter settings make it unique compared to other lending and borrowing protocols. A borrower can request one Cardano-native asset (CNT), supply another as collateral, and pay interest on a third one. All assets' value is calculated in ADA, ensuring maximum accuracy when determining the loan's health factor.

DAO Governance: Aada's Decision-Making Model

Aada Finance's on-chain governance model enables the community to add and remove tokens, change the transaction fee parameters, and submit and vote on various proposals. AADA token holders can participate in the decision-making process, making it a decentralized autonomous organization (DAO).

Aada Finance was founded by Rytis and Mantas Andriuska, who learned about crypto in 2016 and were inspired by blockchain technology's ability to facilitate trustless transactions. The DeFi craze raised their interest even more, leading them to Cardano. The initial concept of Aada Finance involved creating a Cardano equivalent of Aave. Later, Aada developed into a project with a unique NFT bond interaction model. The core Aada Finance team has been based in Kaunas, Lithuania, since the project's inception.

In conclusion, Aada Finance is a promising lending and borrowing protocol that introduces innovative features like NFT bonds, multi-asset lending and borrowing, and DAO governance. With AADA token holders being able to participate in decision-making, Aada Finance is a true example of a decentralized autonomous organization built on the Cardano blockchain.