Frequently Asked Questions
At its core, yield farming is a process that allows cryptocurrency holders to earn rewards on their holdings. With yield farming, an investor deposits units of a cryptocurrency into a lending protocol to earn interest from trading fees.
ADALend is looking to scale and provide various assets, including LP tokens as collateral to support leveraged yield farming on the Cardano ecosystem.
A DAO works without hierarchical management and can have a large number of purposes. Freelancer networks where contracts pool their funds to pay for software subscriptions, charitable organizations where members approve donations and venture capital firms owned by a group are all possible with these organizations.
In the context of the cryptocurrency market, liquidation refers to the exchange forcibly closing a trader’s leveraged position due to a partial or full loss of the trader’s initial margin.
You can reduce the risk of liquidation in several ways. Choosing token pairs with low volatility relative to each other reduces risk. Choosing lower leverage and therefore a wider liquidation window reduces risk. If you check back and see that your position is getting closer to liquidation you can reduce leverage or deleverage completely any time you want.
The security of the project is enhanced by it’s protocol architecture, code quality, health monitors, and active liquidation bots and insurance. The collateralization ratio is helping the loan amount to be consistently lower than a specific percentage of collateral. And the origination fee for borrowing also prevents spam on the contract.
The total supply of ADAL is going to be 45,000,000 tokens.
We are planning to launch the ADALend lending platform fully in 2022 Q3-Q4.
Liquidity is predicated on having enough assets in each pool in order to facilitate lending. ADALend addresses this requirement by incentivising users to deposit assets and provide liquidity.
The ADALend protocol will power the new foundational wave of flexible financial markets by providing a layer for instant loan approval, automated collateral, trustless custody, and liquidity.
We believe Cardano will mature to be the Layer 1 platform of choice as developers and investors recognize the network’s potential to challenge the embedded status quo of monopolistic power structures within the world of crypto. As such, Cardano focuses on moving toward an all-inclusive technological standard and open platform with unmatched security and tremendous blockchain speed all of which result in lower transaction fees. Since the Cardano project is under the administration of a non-profit foundation and offers a plethora of advanced functionalities, we project that most future blockchain and crypto projects will look to Cardano as the better option, against its competitors.
Loans have infinite duration, and there is no repayment schedule: partial or full repayments can be made anytime.
The key dependency in the lending protocol is Price oracle. We will be utilizing multiple oracles for protocol security – Chainlink and Ergo are good oracles to start with.
ADALend is looking to bring a new governance system to build a scalable system truly controlled by active users and backers of the community.