The Cardano network remains to be one of the most trusted ecosystems in the space. As a result, more companies in the space continue to use the blockchain of the network to create their own projects. ADALend is one of the ecosystems in the crypto industry that utilized the technology of Cardano to power up its platform.
ADALend is a platform designed to maintain the utilization ratio at a low level for non-stable coins and to maintain the higher amount of tokens in circulation. This high amount of token circulation allows the platform to support liquidity mining, a feature that rewards token holders.
Furthermore, ADALend provides more rewards to all the token holders by simply receiving loan interest from the pool borrowers. This feature works when the borrower pays the lender, and the lender gives back the interest to the token holder. Indeed, this feature of the network benefits all its participants in the cycle.
Meanwhile, ADALend also claims to reduce the idle assets on the platform. This is done by shifting a portion of them to stable swap platforms with no temporary loss within the acceptable range. Users who normally store their token in cold storage can lease their tokens to support the lending protocol. In return, the token owners can enjoy earning more profit, a thing that they cannot have if they let their assets sleep in their cold storages.
On the other hand, this feature of ADALend benefits everyone in the blockchain market sector of the Cardano ecosystem. It also assures an equitable asset allocation based on the terms of the loan arrangement between the borrower and lender.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. No information in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.
Continue reading on CoinQuora
Source: Cryptocurrency - investing.com
