ADALend: 5 Key Strengths Over AAVE
ADALend is technically a sleeping giant waiting to wake up and shake the DeFi world. Considering that AAVE is the main competition in the market, here are five things that ADALend will perform better.
ADALend utilized Cardano as the main blockchain that will power up the DeFi system; unlike AAVE built on Ethereum, Cardano is much cheaper to send, receive, and initiate contracts. In 2021 Ethereum gas prices skyrocketed, making disgruntled customers realize that fees were a significant problem for everyone using the AAVE protocol. In some instances, in 2020 and 2021 average fee for transactions reached as high as 80 USD (BitInfoCharts). Cardano fees remain low in comparison mainly due to its dual-layer design, which separates computations from settlements.
2. Transaction Speed
Following the same fees principles, the Ethereum network that is currently using a Proof-of-Work (PoW) blockchain is still inefficient compared to the Cardano blockchain, a Proof-of-Stake (PoS) system. The Cardano blockchain allows the processing of a much higher number of transactions in comparison to Ethereum. The Cardano blockchain is much faster.
3. Code Security
The Cardano codebase is developed in Haskell, a widely popular programming language explicitly chosen for its ease of auditing.
The Solidity programming language was invented by Ethereum developers, a very specialized language, and few engineers can write it, much alone peer-review.
The more engineers who can review and audit code, the more secure and airtight the system will be. To put it another way, Cardano developers want the blockchain to be as free of code errors as possible to avoid future security concerns.
ADALend will use Chainlink and Ergo as oracles, offering customers a more secure and efficient experience. Ergo’s oracle pools are more efficient and configurable than Chainlink’s oracle architecture, which uses numerous single oracle data sources. AAVE uses Chainlink oracles only.
Cardano uses a Proof-of-Stake consensus algorithm called Ouroboros. This closed-loop system efficiently uses network recourses by allowing ADA holders to delegate their assets to secure the network. The result is a much less resource-intensive system instead of Ethereum, which is mainly powered by miners consuming a lot of energy to secure the network consuming massive amounts of power in the process.
Adalend had an oversubscribed seed round earlier last month; with the private sale round running out quickly, many investors are rushing in to guarantee their spot in the private sale.