The number of DeFi solutions on Cardano is growing rapidly as Liqwid launches the first peer-2-pool lending and borrowing feature based on Cardano
Cardano-based Liqwid Labs recently shared an exciting announcement about the new peer-2-pool lending and borrowing solution. The new feature is already live on the Cardano preview testnet.
The new solution uses the custom-designed Liqwid smart contract that provides custody, escrow and settlement between providers and borrowers. The collateral asset is deposited in the smart contract and kept there for the provider’s protection.
peer-2-pool lending and borrowing is live on the Cardano preview testnet!$ADA $LQ 💧 pic.twitter.com/yqG0WlJcU9
— Liqwid Laboratories💧 (@liqwidfinance) October 5, 2022
The smart contract is connected to oracle price feeds to determine liquidation levels and use algorithmic interest rates, and it has open APIs.
According to the developers, the solution, including market lending and borrowing, an interest rate curve and bundled contracts, was rolled out to the testnest preview about two weeks ago and to the old testnet three. weeks ago. The public launch will take place in the coming weeks.
The main difference between peer-2-peer and peer-2-pool lending and borrowing is the absence of the human factor. Liqwid’s solution is primarily based on Aave’s peer-2-pool style of lending and borrowing, which means rates are based on algorithmic supply and demand flow metrics are calculated by the user. yield curve algorithm.
Until the end of the year, Liqwid aims for public launch on Cardano mainnet if testing and auditing go as planned.
Liqwid is just one part of Cardano’s rapidly developing decentralized finance industry. Unfortunately, due to the limitations of the UTxO mechanism, developers had to find other ways to process accounting transactions, which is why the flourishing of DeFi solutions on the network came much later than on alternative networks based on accounts like Ethereum or Solana.