Amid the eager anticipation of Cardano’s Vasil hardfork, Aada Finance announces it will open-source its V1 lending and borrowing protocol. By making its repo fully visible, Aada becomes the first lending and borrowing dApp on Cardano to open its code. Moreover, the initiative is an excellent opportunity to welcome the broader development community.
“Transparency and visibility are one of our core principles, and making our testnet public was just a step in the right direction. That way, we put our community first when polishing our app’s workflow and user experience. Opening to our fellow Plutus/Haskell developers will give us an objective point of view when evaluating our product.”, said Mantas Andriuska, Co-Founder of Aada Finance.
What exactly is the Aada V1 Lending Protocol?
Aada V1 is a Cardano-based P2P (peer-to-peer) lending protocol. The alpha V1 version allows users to both lend and borrow assets in an order book style, utilizing the innovative NFT-bond strategy. This is a unique DeFi use case, mainly because of the tokenization of the lender-borrower interaction.
Aada Finance open sourcing to fulfill the Cardano peer review concept
IOHK’s Cardano has been a revered defender of genuine decentralization in blockchain technology. In this regard, Aada Finance fully embraces the network’s peer review principle as a form of community-driven development. To further incentivize commitment, the team will commence a bug bounty program. You can already work; fork the code here.
“We will conduct an external audit to ensure high confidence in our V1 protocol’s security. Still, going open source will give us an entirely new layer of possibilities for improvement. Ultimately, we will actively collaborate with Cardano’s development community to channel our efforts more efficiently.”, added founder of Aada Finance Mantas Andriuska.
As part of its pre-launch schedule, the Aada V1 protocol will undergo an external audit before launching on mainnet. Doing so aligns with the project’s ambitions to lead the way in the Cardano DeFi. Moreover, an external audit will ensure the V1 lending and borrowing protocol is up to par with the industry standards.
The Bug bounty program
As mentioned, a bug bounty program will be implemented. This is part of the community-driven approach, and of course attracts additional interest to improve the code.
Aada Finance has shared that all community members and developers can participate. Rewards will be distributed for every bug and/or error. Since the event will start later on, we recommend you to follow Aada Finance’s community channels, such as Aada’s Telegram, to stay updated.
Innovated lending and borrowing
While Cardano is yet to unleash its full DeFi potential, Aada V1 will unveil an entirely new use case for lenders and borrowers. The peer-to-peer app will introduce a unique NFT-bond strategy, which will tokenize loans and loan requests. This feature will allow users to transfer and trade their loans as NFTs seamlessly. Newcomers are welcome to explore the possibilities of the strategy on the Aada V1 testnet.