As part of the Cardano ecosystem, ADALend is developing a scalable and decentralised lending protocol. The Cardano community will regulate the lending protocol. The ADALend protocol will enable a new generation of flexible financial services for digital asset markets. It will lay the groundwork for quick loan approval, automated collateralization, trustless custody, and liquidity in the digital asset markets.
Cardano (ADA) is a blockchain platform that will power the ADALend protocol. It employs cutting-edge technology to create a scalable, transparent, and robust cryptocurrency. It is one of the many well-known cryptocurrencies that have grown and expanded in recent years because of their accessibility.
Charles Hoskinson built the groundwork in 2017 with Input Output Hong Kong (IOHK) for what is now the most important third-generation blockchain asset available on the market.
Cardano (ADA) has a well-organized staff in place. The corporation also has a well-defined roadmap for the future growth of its initiatives.
With its massive scaling potential and capacity to build decentralised apps, blockchain is a solid technology that will meet future demands in a variety of areas.
Why did ADALends choose Cardano?
ADALend uses Cardano as the primary blockchain to power the DeFi system. Unlike, AAVE which uses Ethereum. Since it is cheaper to send and receive smart contracts on Cardano.
In 2021, Ethereum gas prices skyrocketed. As a result, forcing users to discover that fees is a major worry for everyone utilising the AAVE protocol at the moment.
According to reports, in some cases, the average transaction cost in 2020 and 2021 could reach $80.
Cardano’s costs remain minimal in comparison to other cryptocurrencies. Cardano manages it using the network’s dual-layer architecture, which separates computations from settlements.
The Ethereum network is still inefficient when comparing it to the Cardano blockchain. Cardano uses a Proof-of-Stake (PoS) mechanism and follows the same fee rules as the Ethereum network. When compared to the Ethereum blockchain, Cardano processes a much higher number of transactions.
Cardano’s blockchain works at a much quicker rate. To make auditing as straightforward as possible, the Cardano codebase is being written in Haskell. Haskell is a popular programming language that was specifically chosen for this reason. Solidity is a specialised programming language invented by Ethereum developers. It is only used by a limited group of programmers and has not been the subject of rigorous peer review. The more engineers who can inspect and audit the code, the more secure and impenetrable the system appears to be.
Cardano’s engineers want the blockchain to be as free of code faults as possible to avoid future security issues.
ADALend will use Chainlink’s oracle and Ergo to give clients a more secure and efficient experience. Using Ergo’s oracle pools is more efficient and customizable than Chainlink’s oracle architecture, which relies on a large number of single oracle data sources. AAVE only uses Chainlink oracles.
Cardano employs the Ouroboros consensus algorithm, a Proof-of-Stake consensus system. This closed-loop technique enhances the efficiency with which the network employs resources since ADA holders may delegate their assets to safeguard the network. The result is a far less resource-intensive system than Ethereum.