Cardano Now Offers New Kind of Lending and Borrowing, Already Live on Testnet

Oct 10,2022
Cardano Now Offers New Kind of Lending and Borrowing, Already Live on Testnet

The Liqwid laboratory in Smart, the headquarters of the company, recently released an encouraging notice, including the newly developed interbank cooperative lending solution. Featured functions have long been published on the Internet in Cardano's browsing detection.

A new solution uses customized Liqwid smart contracts to ensure escrow, escrow and liquidation between dealers and lenders. The pledged property is stored in the smart contract and stored there to protect dealers.

The smart contract and Oracle price feed are connected to each other to define the settlement capacity and use the optimized algorithm interest rate, and have an open API.

According to the developer's detailed introduction, the solution, including sales market lending, interest rate curve and mass contracts, was deployed to browse and test the network about two weeks ago, and was deployed to leave the detection online three weeks ago. It will be released in the coming weeks.

The important difference between peer lending and peer cooperation is the lack of human factors. Liqwid's solution is based on Aave's peer pool 2 lending design style, which means that the interest rate is calculated based on the optimized algorithm supply and demand flow measurement results and the optimized algorithm based on the interest rate curve.

By the end of this year, if the evaluation and financial audit are carried out as planned, the purpose of Liqwid is to publish it on the Cardano website.

Liqwid is only a part of Cardano's fast growing decentralized financial industry. Unfortunately, due to the limitation of UTxO system, real estate developers have to think of other accounting transaction methods, which is why the development trend of DeFi solution on the Internet is much later than other Internet based accounts (such as Ether or Solana).