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ADALend Bringing Lending to Cardano Blockchain

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High demand for DeFi on Cardano, seed round oversubscribed 400%

Amidst a wave of new blockchain protocols finding traction in the DeFi space, ADALend is the first lending protocol coming to Cardano. With the ADA token already in high demand, DeFi on the smart contract-enabled blockchain resonates well with investors. The seed round for ADALend and its native ADAL token was 400% oversubscribed. 

A group of seven private angel investors acquired 1.8 million ADAL tokens, or 4% of the supply, for $540.000. This means that they bought ADAL at a price of $0.30. The team will sell another 20% through a private investment round, while 30% will be used for staking rewards. The remaining 45% of the 45 million ADAL tokens will go to the project’s treasury, the team, and future development. 

What will ADALend offer

ADALend wants to allow users to lend on any token pairing, as long as there’s liquidity of course. Therefore the lending protocol will incentivize users to offer their assets as liquidity, using the native ADAL token as a reward mechanism. 

Holding the ADAL token gives users voting rights on governance proposals, and allows users to introduce new proposals as well. Ultimately they want the platform to become a foundation layer for the wider Cardano ecosystem, attracting assets and empowering developers to build an ecosystem of financial products. 

DeFi here to stay

After the DeFi summer of 2020, the technology has proven its value to investors and users alike. Decentralized finance offers ways for consumers to swap tokens, or lend money using on-chain collateral. One year ago, the DeFi market had a total Total Value Locked (TVL) of just over $11 billion, while that number has now increased to more than $110 billion. 

With a market cap of $69.2 billion, Cardano’s native ADA token is in the top 5 biggest cryptocurrencies on the market. The blockchain aims to become a decentralized financial instrument for everybody, thanks to its fast and cheap transactions as well as its environmental-friendly Proof-of-Stake blockchain consensus mechanism. 

As DeFi finds its way on Cardano, we might see billions of dollars in value move into this new DeFi market. ADALend aims to become the main lending protocol on the Cardano blockchain, a chain that just recently launched its functionality for smart contracts.

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