Number of DeFi solutions on Cardano growing rapidly as Liqwid releases first Cardano-based peer-2-pool lending and borrowing feature
cardano-based Liquid Labs recently shared an exciting announcement on the newly developed peer-2-pool lending and borrowing solution. The new feature is already live on Cardano’s preview testnet.
The new solution utilizes the custom-built Liqwid Smart Contract that ensures custody, escrow and settlement between suppliers and borrowers. The collateral asset is deposited in the smart contract and held there for the protection of the supplier.
The smart contract is connected to an Oracle price feed to set liquidation levels and use algorithmic interest rates, and has open APIs.
According to developers, the solution, including market lending and borrowing, an interest rate curve and batching contracts, was deployed to the preview testnest approximately two weeks ago and on the legacy testnet three weeks before that. The public launch is coming in the next few weeks.
The main difference between peer-2-peer lending and lending and peer-2-pool is the absence of a human factor. Liquid’s solution is mostly based on the peer-2-pool style of lending and borrowing, meaning that rates are algorithmically based on supply and demand flow measurements are calculated by an interest rate curve algorithm.
Until the end of the year, Liqwid is aiming at the public launch on the Cardano mainnet if the testing and audit goes according to plan.
Liquid is a part of Cardano’s rapidly growing decentralized finance industry. Unfortunately, due to limitations in the UTxO mechanism, developers had to come up with alternative methods of bookkeeping transactions, which is why DeFi solutions bloom on the network much later than alternative account-based networks like Ethereum or Solana. came in.
