A suite of Defi including: an AMM based swap, a Launchpad, and peer-to-peer lending. Offering margin trading and affiliate and address milestone bonuses.
ADA Finance aims to bring more direct, peer-to-peer, finance options to the defi world. Yoroi, Daedalus, and Gero wallets will be integrated into the platform and can thus be connected to display the user's balances inside of the platform.
Partner audits will be conducted of each pairing’s smart contract before the smart contract is released for public testing.
Token wrapping will be enabled on the platform and tokens are matched 1:1 over a smart contract Token Bridge. This process is overseen by an oracle so that the wrapped assets and representative token maintain their stated 1:1 ratio. There is a 0.1% platform fee associated with unwrapping assets.
ADAFi Swap runs on an AMM algorithm and anyone can create a token pairing provided they lock up a minimum amount of liquidity for 12 months. Fees for using ADASwap are as follows:
- 0.3% fee for swapping tokens
- 0.05% fee for swapping stable coins or main pairs
Fees are split between liquidity providers, LPs, proportional to their liquidity contribution and fees are deposited as liquidity reserves back into the pool from which they originated. This increases the value of liquidity tokens held by the LPs and they then collect their fees by burning LP tokens to receive the associated quantity of asset. It also increase the depth of the liquidity pool.
Users can stake their ADAFI Tokens to the platform for however long they want and can withdraw their staked amount, or claim their staking rewards, “without any delay”. For staking there is a progressive rewards model, meaning that the longer a user stakes their tokens the higher the APR they receive.
- 1-90 days = 20% APR
- 91-180 days = 24%APR
- 181+ days = 30%APR
Staking rewards are allocated every second and distributed quarterly. Stakers are charged a 1.25% deposit fee and a 0.75% withdrawal fee. There are 0% fees for claiming rewards or compounding those rewards into the current stake.
To incentivize LPs ADA Finance has set up farming pool. also called “staking Liquidity Points”. Users deposit liquidity points into the farming smart contract and get rewards, from a fixed rewards pool, proportional to their contribution to the pool whilst still receiving a share of swap fees. Projects that perform fundraising on the Cardanow IDO Launchpad are required to set up a farming pool to incentivize their community to stake liquidity to the platform. Farming comes with a 0% deposit fee and a 1% withdrawal fee.
Lenders: A lender sets up each loan choosing: which asset to offer, how much of that asset to offer, how long to offer it for, and at what daily interest rate (up to 2%). These loans are then made available to borrowers in a marketplace style setting, where they can choose the loan that fits them.
Borrowers: Loans on P2P Finance require crypto collateral from the borrower, but no collateral minimums are stated in the whitepaper. These are short term loans, with borrow periods of 7, 14, and 28 days. Borrowers can pay back the loan before the end period if they wish, and will pay less interest for doing so i.e. not pay interest past the day they closed the loan.
There is a 15% fees for lenders on the platform; taken from their realized profits on the loans paid back to them. 5% of of this goes into an insurance fund to protect lenders against liquidation. If a loan is liquidated then the insurance fund is used to provide any additional funds so that the lender can be sure to receive their initial assets and the interest amount they would have received up to the point of liquidation. The other 10% of fees is distributed to platform development (5%), the affiliate network (3%), and the DAO program (2%).
Lenders can opt to receive their loan interest in ADAFI tokens. Doing so guarantees them reimbursement of accrued interest upon liquidation events, and those that take this option get an additional 1% bonus, paid by the platform, on top of their profits from the loan.
Margin Trading is only available for assets that support a decentralized price feed (from the Charli3 oracle) because liquidations are triggered by this price feed. Margin traders are required to hold 105% of their position as collateral and if this is not kept up then their position will be liquidated. Margin trading requests are filled by lenders on ADA Finance, and traders can manually select their margin loan if they wish.
Margin tradings fees are 0.4%. Of this 0.3% is provided to liquidity providers on the ADAFi Swap and 0.1% is given to the platform to support the ”Margin technology”.
A launchpad enabling projects to raise funds by holding an Initial Decentralized Exchange Offering, an IDO, on ADAFi Swap. Funds raised through an IDO are drip fed to the project to prevent rug-pulls and exit scams.
Projects wishing to complete an IDO must first go through a review process. After successfully making it through the review process the project is then voted on by ADAFi Token Ambassadors (the highest level of DAO membership). These Ambassadors are voting on whether or not to accept that project onto the Cardanow launchpad. Only 1 project can perform fundraising at a time, and voting takes place once a month; so only 1 IDO can be hosted each each month.
Users are made eligible to participate in these IDOs through two avenues:
- Being a member of the whitelisted investment pool organized by the listing project
- By holding 3000 or more ADAFi token.
Funding raised through the launchpad is split 3 ways:
- 70% To the project for development.
- 20% Locked for 12 months as liquidity on ADAFi Swap.
- 10% Platform fee taken by ADA Finance; 7.5% for the platform and 2.5% for the DAO program.
ADA Finance aims to evoke a DAO in the management on the platform. There will be 3 levels for DAO members, and membership is defined by P2P token staking quantities.
- Counselor: 25,000 ADAFI tokens
- Minister: 50,000 ADAFI tokens
- Ambassador 100,000 ADAFI tokens
When users reach the required staking amount they must manually activate their DAO level. Doing this will lock their tokens for a pre-specified length of time, with the length of time relating to their DAO level; lower levels having longer lockup periods.
Increasing their level provides a DAO member with increased voting privileges as well as a higher % of fees earned from various aspects of the platform. Rewards for DAO members are distributed every quarter.
Affiliate Networks and Address Milestones
Users can create a smart contract by locking up 500 ADAFI tokens for a minimum of 12 months. That smart contract will then generate a referral link. There are 3 levels of affiliate network meaning that if your affiliate has and affiliate who has an affiliate, you will receive percentage rewards for the activities of each of these persons; decreasing in value the further they get from you.
Address milestones are a rewards based system that puts users of the platform into 1 of 5 categories, depending on their lifetime activity. These categories are named after precious materials and range from Bronze to Diamond. On each level the user obtains rewards in ADAFI tokens for hitting milestones in four different categories, from trading volume to referrals; and the rewards are higher as the levels go up.
Users can report token duplicates on the platform and get rewarded in ADAFI tokens for their efforts. Projects can set up farming pools on ADA Finance to incentivize LPs.