New type of asset from traditional finance will be available on Cardano network
The Cardano-based decentralized financial platform continues to implement new features aimed at attracting more users to the Cardano network. With the implementation of NFTs and regular “bonds”, platforms like Aada aim to create new investment opportunities and market exposure, through 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.
Along with new features never seen on Cardano before, users will be able to borrow, lend, transfer and trade loans. Implementing basic and familiar lending and borrowing functionality should make it easier to transition from an Ethereum or Solana-based platform to the 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.
In a nutshell, NFT bonds are two different types of assets: the borrower’s note and the lender’s surety. The first holds an NFT and repays the loan with a guarantee to collect the collateral before maturity. The lender’s surety works with each other with security to claim a loan, interest if the loan has been liquidated, and interest with security.
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 these bonds with the alternative traditional version of the asset.
