An over-collateralized, stablecoin-based protocol offering a multi-asset pool DEX and enabling borrowing against over-collateralized assets.
The Ardana protocol revolves around around a decentralized stablecoin, dUSD, that is over collateralized by on-chain Cardano native assets and soft-pegged to the US Dollar. It is yet to be announced how much the stablecoin will be over-collateralized by.
dUSD is the first iteration of Ardana’s stablecoins. In the future multiple stablecoins, representing other FIAT currencies, will be backed, minted, and traceable on the platform.
Danaswap: The DEX
An AMM based DEX with muti-asset pools, i.e. not just asset pairs, providing minimal slippage even for large trades.
Users can borrow dUSD by locking up their approved Cardano Native Token collateral in an over collateralized loan; with collateral ratios yet to be determined.
Throughout the period of the loan the user must maintain a sufficient collateral to loan ratio, in the same native token used to create the loan, or have their assets liquidated. The opposite is also true, if the assets laid down as collateral rise in value then a user can choose to repay only a part of their loan amount, release some collateral and continue with the loan.
When a user deposits their collateral into an Ardana smart contract stable coins are minted in return. A stability fee of 3% per annum is charged for borrowing on the platform and is charged on a pro rata basis.
When a position is liquidated the collateral must be auctioned before the collateral falls below the value of the debt. The collateral is auctioned to liquidators who bid against each other to purchase the asset. The revenue from this auction is used to settle the users debt with the platform. If there are insufficient bids for the collateral the debt is absorbed by the platforms buffer, “Ardana Buffer”, who’s purpose is this. This buffer is funded by stablecoin proceeds from previously successful collateral auctions.
DANA: A Platform Token
Users can earn rewards derived from platform fees by:
- Staking DANA to earn exDANA
- Providing liquidity
- Depositing dUSD into the “Saving Module” i.e. staking dUSD
DANA holders can also vote and influence the direction and development of the platform.
Ardana plans to have a multi-currency FIAT onboarding ramp along with mobile applications to increase familiarity, accessibility, and use of the platform amongst people.