Home » Ethereum Cardano-based DeFi protocol hopes to incentivize DApp development Ethereum Reading 3 min Views 3 DeFi enthusiasts might finally have a reason to move away from Ethereum. While Ethereum (ETH) is constantly in the news cycle regarding its upcoming 2.0 update, similar smart contract-powered platforms are slowly building up their reputations. One such network is Cardano (ADA), a peer-reviewed, proof-of-stake (PoS) blockchain network for DApp development and decentralized finance (DeFi). As developers begin deploying DeFi decentralized applications (DApps) on the Cardano platform, they’ll need the support of layer-two solutions to scale, remain secure and manage and incentivize their communities. ADALend is leading the charge in this regard, offering features to slowly entice users away from Ethereum and onto Cardano. A decentralized shift ADALend is a Cardano-based lending protocol aiming to provide decentralized finance DApps with a flexible layer-two solution similar to those offered by Ethereum-based layer-two protocols. The ADALend solution will offer various lending pools, each with its own cryptocurrency. From there, users can deposit assets to the pool in return for interest, reducing the number of idle assets within the Cardano ecosystem. The platform then supports borrowers — users who borrow amounts of said cryptocurrency by depositing another asset as collateral. The total amount of the borrowed assets is based on what they put up as collateral, alongside the assets they’ve already borrowed. Users can borrow funds for as long as they’d like, with partial or full payments accepted whenever. However, a borrowing position can see liquidation in the case of a significant price change. Liquidation will occur when the value of collateral drops below a pre-established threshold. All price information is pulled from oracles, which are tied to various price providers to keep values as accurate as possible. Belief in Cardano At this point, ADALend is more than a vision. Top venture capital firms Moonwhale Ventures, JP Maxx and even the IOHK Foundation have backed the project, believing in its goal to power the new wave of flexible financial markets on Cardano. In fact, the ADALend seed round sold out within its first hour of going live. Partly powering this popularity is the fact that ADALend is a protocol powered by users. Platform governance relies on a user-driven decentralized autonomous organization (DAO) in which new additions and upgrades are introduced via proposals. Users then discuss and vote on these proposals, which are then integrated into the network after the majority vote. The team hopes that its support of user control alongside fair interest rates will help drive Cardano enthusiasts to the ADALend protocol. Since its venture funding round, ADALend has worked to expand its team into developing even more features. Its next twelve months will focus on building out its current features while laying out the foundation for newer DeFi options as well. That, and the team will continue seeking out new partnerships to offer its user base an ever-expanding set of features. Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you with all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor can this article be considered as investment advice.