Why Ardana Is Poised To Bring Out Cardano's Full Capabilities
The Cardano blockchain was founded by Ethereum Co-founder, Charles Hoskinson, in 2015. Designed as one of the first “Ethereum killers,” it was set to become a market disruptor from inception with its innovative, powerful, and environmentally-friendly infrastructure. Cardano is completely open-source and decentralized, leveraging a Proof of Stake (PoS) consensus mechanism, called Ouroboros, on its network.
It was launched in 2017 and has made major developments and upgrades ever since, gaining a notable reputation given its strong team and efficiencies over existing blockchains. Now its network is really starting to pick up steam, and projects are beginning to deploy dApps and protocols on it, leveraging the many attractive features and benefits.
One of these projects is Ardana, a comprehensive stablecoin ecosystem, bringing a blazingly fast, low-cost, and high-reward DeFi (decentralized finance) hub for stablecoins to this network. But what exactly is Ardana, and what does it mean for DeFi on Cardano?
Ardana created a vast ecosystem centered around its stablecoin solutions. Currently, it offers three different popular fiat-denominated stablecoins: dUSD, dEUR, and dGBP.
What makes these stablecoins different and unique from others is that they’re fully backed by on-chain collateral and pegged to their underlying fiat currency. Users can confidently borrow against them and depend on the availability of sufficient liquidity. Stablecoins on the protocol can also be minted, staked, and stored, opening a wide breadth of other use cases.
Moreover, as a DeFi hub, it takes the utility and applicability of these stable assets to the next level, leveraging an attractive suite of products and features.
Bringing DeFi to Cardano
The Ardana protocol truly comes to life through Danaswap, its very own DEX (decentralized exchange). Cardano was built to support DeFi, and Danaswap brings the DeFi elements of this blockchain to the forefront. It relies on stable, multi-asset pools that allow users to leverage supported stablecoins to seamlessly and quickly swap between assets, earn high yields, and much more. With the suite of different fiat-backed stablecoins, it’s a digitized Forex market in your back pocket.
Liquidity providers can deposit supported assets into the liquidity pools and, as a result, earn rewards in $DANA from platform trading fees. These rewards are proportional to the amount of liquidity the user contributed.
$DANA is Ardana’s utility and governance token. Liquidity providers who earn it as a reward can leverage it to vote on future project initiatives. This ensures that the backbone of the system — the liquidity providers — have a deep investment in, and control over, the platform they are powering; it’s the embodiment of the decentralized environment it ultimately aims to create.
Vaults within the Ardana protocol provide the gateway to minting supported stablecoins. These vaults secure collateral for stablecoin loans. For example, one of the accepted digital assets in the vaults is $ADA, Cardano’s native utility token. Users can deposit $ADA in order to mint a capped amount of a desired stablecoin. As these vaults are permissionless and non-custodial, this means that Ardana’s stablecoins are decentralized. And, by repaying the loan and stability fee, users can retrieve their collatoral from the Vaults.
The team behind Ardana meticulously designed the protocol to tap into what users need most — a fast and low-cost means to engage in new financial opportunities relying on assets containing price stability.
Thanks to the technology behind Ardana, the full capabilities of the Cardano blockchain are truly realized. Born to be a DeFi ecosystem, Ardana is facilitating this by creating the portal to DeFi on Cardano. Engaging the cost-effective, smooth, and eco-friendly of Cardano, these two are enabling DeFi mechanisms with what will become essential network efficiencies — transactions that can take place in the blink of an eye.
As the protocol continues to grow and blossom, users will keep reaping the benefits from its powerful product suite, drawing in more participants and putting both Ardana and Cardano at the forefront of DeFi activity and innovation.
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