Cardano Decentralized Lending Protocol Passes Audit
Aada Finance is a peer-to-peer (p2p) NFT lending protocol that allows users to lend their assets to earn interest or borrow assets to use as financial tools. In a press release to CoinTelegraph, Aada Finance announced that the release is scheduled for September 13. This release will mark Aada V1 as the first lending and borrowing protocol on the Cardano mainnet.
The protocol has been trialed on the Cardano testnet and just went through a month-long audit conducted by Vacuumlabs. VacuumLabs provides development services focusing on fintech, banking, and blockchain technologies.
Vacuumlabs conducted the audit in two phases: the design overview and the manual code audit.
The design overview phase consisted of a full review of all code and data structures.
The manual code audit included penetration testing and vulnerability assessment.
Testing included Denial of service (DOS), faking timestamps, unauthorized minting, stealing funds, and more.
The audit states that the Aada Finance team has fixed most issues and acknowledged the rest.
The protocol issues NFT bonds that are transferable, tradeable, and redeemable rather than attributing loans directly to wallet addresses. Those holding a Lender NFT bond can claim a loan and interest. Anyone holding a Borrower NFT can redeem the deposited collateral.
In V1, a borrower creates a loan request which locks the borrower's collateral into a smart contract. If a lender accepts the loan request, the lender must send the loan amount to the borrower's wallet. The borrower’s collateral is then locked until full repayment of the loan and interest to the lender. Borrowers can cancel the loan request to receive the collateral back if no one accepts the loan request.
