Lending protocol begins hotly-anticipated cross-platform integrations
ADALend, the DeFi protocol that brings decentralized lending to the Cardano blockchain, will begin the development of cross-platform integrations imminently. ADALend seeks to provide a basis for immediate access to loans and collateral by taking advantage of decentralized finance’s flexibility.
Cardano’s answer to lending, loans and collateral, ADALend is revving its engine for a fast-moving 2022. Cross-platform integrations, most likely with Ethereum, are inbound. Cardano created a bridge to Ethereum earlier this year, therefore it makes sense for ADALend to utilize this. These improvements to the service will simplify the lending process and bring DeFi services to a wider audience, particularly those of lower financial means.
ADALend to DeFi
The ADALend protocol will power a new wave of flexible financial markets, serving as a foundational layer for instant loan approval, automated collateral, trustless custody and liquidity. Through the new cross-platform integrations, ADALend offers permissionless lending on any pairing. Plus, the protocol incentivizes liquidity and community governance.
In brief, ADALend hosts a layer of financial products aimed at developing a complete independent ecosystem. This service will, in ADALend’s words, replace traditional and non-traditional financial solutions.
Javed Khattak, ADALend’s General Manager announced that there remain some key challenges for ADALend. The project must strive to improve the user interface, while the platform’s user experience and overall simplicity must also improve to ensure fewer barriers to entry for traditional users. DeFi can be overwhelming to new investors or curious first-timers, so breaking down these walls and making the UX fluid and intuitive can be a game-changer.
DeFi Market Running Hot
According to DappRadar reporting, the DeFi ecosystem’s TVL reached $219.8 billion, 39% up from the previous month in October. Cardano’s ADALend project is well poised to take a slice of the pie given that at the time of writing, 93% of the industry’s TVL is concentrated on 7 blockchains. ADALend’s blockchain Cardano may soon feature among the Top 7.
ADALend chose to build on the Cardano Blockchain due to its superior suite of blockchain tools. As the leader in PoS, Cardano is a cheap and energy-efficient blockchain that targets the underprivileged. For Khattak, Cardano is a collection of protocols that could offer economic support to billions of people, specifically in poor regions. And with the arrival of hotly anticipated cross-platform integrations, Cardano could fly.
An Ethereum-based Cardano was first mentioned by Charles Hoskinson in an AMA in September 2020. The ERC-20 converter would enable the migration of developers and tokens from Ethereum to Cardano. It’s likely that ADALend will tap into this migration, and the cross-platform bridge will bring significant developments.
While DappRadar recently hailed ADALend as a DeFi sleeping giant, it’s true that even if ADA takes a small tranche of Ethereum’s DeFi energy, the project will explode. Fees on ADA cost an average of $0.40 per transaction, whereas Ethereum can balloon to hundreds of dollars in gas.
As ADALend is still early in its DeFi journey, it encourages all curious investors to read its whitepaper. Get familiar with all the amazing features and protocols that the project encompasses here.
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