ADALend, part of Cardano’s ecosystem, creates a modular and decentralized lending protocol that the Cardano community can regulate.
ADALend Protocol will enable a new type of financial service for digital asset markets. This protocol provides a platform for quick loan approvals and automated collateralization. Trustless custody will also be available.
Cardano: Why?
Cardano (ADA), a cryptocurrency platform, has many capabilities to power ADALend. Cardano uses leading-edge technology in order to produce a scalable cryptocurrency that is transparent and resilient. It is one of many well-known cryptocurrency that has grown rapidly over the past years due to its public access blockchain network. Charles Hoskinson, with Input Output Hong Kong and (IOHK), laid the foundation in 2017 for the undisputed most important third-generation cryptocurrency asset on the marketplace.
A well-organized team is in place at Cardano (ADA), and the company has a clearly defined plan for the future development of the company’s projects. The blockchain technology is robust and can be used to satisfy future needs in many areas.
ADALend warms up the DeFi Space
ADALend chose Cardano for the DeFi platform, instead of Ethereum’s AAVE. Cardano can send, receive, initiate and terminate contracts much more easily than Ethereum. Dissatisfied AAVE users realized that AAVE fees had become a major concern in the 2021 price spike. According to BitInfoCharts, the average transaction costs in 2021 and 2020 could have reached 80 US dollars in certain circumstances. Cardano fees are still low when compared with other cryptocurrency, due to its dual-layer network design, which separates settlements from calculations.
The Ethereum blockchain still uses a Proof of Work (PoW), but it is inefficient when compared with the Cardano network, which employs a Proof of Stake (PoS), which follows the same fees principles. Cardano’s blockchain is able to process a greater number transactions than that of the Ethereum. Cardano’s blockchain works at an extremely fast rate. The Cardano codebase was created using Haskell, an extensively-used programming language, specifically for auditing.
Solidity, a very specialized programming language created by Ethereum developers, is not only limited to being written but also subjected for peer review. A system that has more engineers capable of auditing and reviewing code will seem safer and less intrusive. The Cardano developers would like the blockchain code to be free from any flaws to avoid future security threats.
ADALend uses the Chainlink and Ergo oracles to deliver a better and more reliable experience for its clients. Using Ergo’s oracle pools is more efficient and configurable than Chainlink’s oracle architecture, which relies on many single oracle data sources. AAVE uses only Chainlink oracles.
Cardano uses the Ouroboros consensus algorithm. This is a Proof of-Stake consensus method. The closed loop approach optimizes network efficiency due to the ability for ADA holders delegate their assets. This system is significantly more resource-efficient than Ethereum. It’s powered mainly by miners, who use a lot to maintain the network and large amounts of electricity.