You Can Now Trade Bonds on Cardano: Details


article image

Arman Shirinyan

Track live crypto price of 10000+ coins!


New type of asset from traditional finance will be available on Cardano network

The Cardano-based decentralized finance platform keeps on implementing new features aimed at attracting more users to the Cardano network. With implementing NFT and regular “bonds,” platforms like Aada aim at creating new investment possibilities and market exposure, per ADAWhale.

According to a tête-à-tête AMA session with the representative of the platform, the goal is to create a platform similar to Aave for Cardano, besides innovative features like NFT bonds.

Besides new features never seen on Cardano before, users will be able to borrow, lend, transfer and trade loans. Implementing basic and familiar loaning and borrowing functionality is expected to ease up the transfer from an Ethereum- or Solana-based platform to Cardano network.

As for new Cardano ecosystem features like “NFT bonds,” traders will be able to trade or send those bonds from wallet to wallet as those are not locked into an account.

Related:  Ethereum Could Lose 80% of Its Current Value, Crypto Analyst Believes

In a nutshell, NFT bonds are two different types of assets: borrower’s note and lender’s bond. The first one holds an NFT and pays back the loan with a guarantee to take back the collateral before maturity. The lender’s bond works with the other with a guarantee to claim a loan, interest if the loan was liquidated and interest with collateral.

Regular bonds will act in a similar way to traditional financial alternatives, where they bring interest over time depending on the bond’s type and percentage. Bonds bought on the decentralized platform are expected to bring a certain amount of tokens in the next few months when they expire.

Reportedly, traders will be able to trade those bonds with the alternative traditional version of the asset.




Download MAXBIT Android App, Your best source of all crypto news!

Google Play

Source link

Share this article: