• ADALend fires up the decentralized finance (DeFi) space.
• ADALend built a scalable and decentralized lending protocol on Cardano.

ADALend ignites the decentralized finance (DeFi) space with a scalable and decentralized lending protocol on Cardano — a public blockchain platform with various capabilities.

The statement comes after ADALend announced early this month that it is creating a DeFi project and is planning to begin developing cross-platform integrations.

Recently, ADALend protocol announced that it will power a new generation of flexible financial services for digital asset markets. This will offer a foundation for fast loan approval, trustless custody, automated collateralization, and liquidity in the DeFi space.

According to the ADALend team, they chose Cardano as the primary blockchain to power the DeFi system because of the cost-effectiveness of the platform to send, receive, and initiate contracts. This is because the Cardano fees remain low compared to other cryptocurrencies due to the dual-layer design of the network, which separates calculations from contracts.

In addition, ADALend aims to leverage the oracles Chainlink and Ergo to offer a more secure and efficient experience for its users. This is because the team says that using Ergo’s oracle pools is more efficient and configurable than Chainlink’s oracle architecture, which relies on many single oracle data sources unlike AAVE — an open-source and non-custodial protocol that solely uses Chainlink oracles.

Note that Cardano uses the Ouroboros consensus algorithm, which is a Proof-of-Stake (PoS) consensus system. And because of ADA holders who entrust their assets to the network. This closed-loop method maximizes the effectiveness with which network resources are utilized.