Aada is Integrating Chainlink Price Feeds to Help Secure Lending and Borrowing on Cardano
We’re excited to announce that Aada — a DeFi DAO lending platform — is integrating Chainlink Price Feeds on Cardano. By integrating the industry-leading decentralized oracle network, Aada will have access to high-quality, tamper-proof price feeds needed to help ensure we reference fair and up-to-date asset prices when calculating loan-to-value ratios. This will provide our users with stronger assurances that their assets are priced accurately and in a trustworthy manner.
We chose Chainlink as our go-to oracle solution because its infrastructure is seamless to integrate and time-tested in production. Chainlink already helps secure leading DeFi protocols responsible for tens of billions of dollars in smart contract value, maintaining robust security and high availability even amidst unexpected events, such as exchange downtime, flash crashes, and data manipulation attacks via flash loans.
Aada gives users the opportunity to borrow crypto assets by providing collateral and earn interest by lending crypto assets in a decentralised manner. Additionally, the low transaction fees and reliability of the Cardano network will help to keep collateralised loans safe and accessible.
In order to help secure our borrowing feature through fairly priced loan-to-value ratios, we need access to fresh asset prices that are supplied directly on-chain in a highly reliable manner. Fair market asset prices should reflect a volume-weighted average from all trading environments. Thus, we needed to make use of an oracle to fetch aggregated price data off-chain and deliver it on-chain to be consumed by our application.
After reviewing various oracle solutions, we selected Chainlink Price Feeds because they provide a multitude of critical features such as:
- High-Quality Data — Chainlink Price Feeds source data from numerous premium data aggregators, leading to price data that’s aggregated from hundreds of exchanges, weighted by volume, and cleaned of outliers and wash trading. Chainlink’s data aggregation model generates more precise global market prices that are inherently resistant to inaccuracies or manipulation of any single or small set of exchanges.
- Secure Node Operators — Chainlink Price Feeds are secured by independent, security-reviewed, and Sybil-resistant oracle nodes run by leading blockchain DevOps teams, data providers, and traditional enterprises. Chainlink nodes have a strong track record of reliability, even during high gas prices and infrastructure outages.
- Decentralised Network — Chainlink Price Feeds are decentralised at the data source, oracle node, and oracle network levels, generating strong protections against downtime and tampering by either the data provider or oracle network.
- Reputation System — Chainlink provides a robust reputation framework and set of on-chain monitoring tools that allow users to independently verify the historical and real-time performance of node operators and oracle networks.
We are pleased to see Chainlink oracles expand support for the Extended UTXO-based Cardano blockchain. Chainlink Price Feeds and other oracle services will be a game-changer, helping boost the development of hybrid smart contracts within the Cardano ecosystem.
“Chainlink is the most reliable oracle solution within the blockchain economy with proven and extraordinary development capabilities. Integrating Chainlink Price Feeds was an obvious choice as they provide the most reliable and up to date market data,” stated Mantas, Co-Founder of Aada.
Chainlink is the industry standard for building, accessing, and selling oracle services needed to power hybrid smart contracts on any blockchain. Chainlink oracle networks provide smart contracts with a way to reliably connect to any external API and leverage secure off-chain computations for enabling feature-rich applications. Chainlink currently secures tens of billions of dollars across DeFi, insurance, gaming, and other major industries, and offers global enterprises and leading data providers a universal gateway to all blockchains.
Simply put — Aada is a crypto asset lending platform. eUTXO allows users to deposit assets and collect interests or borrow assets and perform financial actions.
Aada is a decentralised money market protocol that enables users to lend and borrow cryptocurrencies in a trustless manner. There is a wide variety of cryptocurrencies to choose from. With the addition of the Cardano ERC20 converter, Aada will bring must-have functionality to the DeFi ecosystem.