Adadao Pre-Prod Testnet v2.0 is Live

ADADAO
5 min readMay 21, 2023

Adadao, a decentralized Stablecoin platform built on the Cardano blockchain, is delighted to announce the highly anticipated release of its testnet v2.0 version. This update marks a significant enhancement as we have transitioned from a PAB-based login system to a more streamlined integration with the light Cardano wallet. As a result, all Adadao services listed below can now be conveniently tested using the Nami wallet.

The testnet, now available at https://test.adadao.org/, offers users a unique opportunity to meticulously evaluate and provide invaluable feedback on the platform’s fundamental features. By utilizing the Nami wallet, users can seamlessly explore the following key functionalities and provide insightful input:

  1. Stablecoin Issuance ($AUSD): Users can experience the issuance of Adadao’s stablecoin, $AUSD, and explore its stability and utility within the platform.

2. Vault Creation, Activation, and Closure: This feature allows users to create, activate, and close vaults, enabling them to manage their stablecoin holdings securely and efficiently.

3. Collateral Deposit, Lending, and Withdrawal: Users can engage in collateral deposit activities, initiate lending transactions, and withdraw their collateral when necessary, providing them with a comprehensive understanding of the lending mechanism.

4. Simple Oracle Functionality (Single Source): The testnet offers users the opportunity to evaluate the platform’s simple oracle functionality, which relies on a single data source for providing $ADA/Usd price feed data to the Adadao ecosystem.

5. Liquidation Functionality: Users can test the liquidation process, exploring how it functions and understanding its role in maintaining the stability of the Adadao platform.

6. Deposit to Stability Pool and Rewards Functionality: This feature enables users to deposit funds into the stability pool and assess the associated rewards mechanism, gaining insights into the overall incentivization structure of the Adadao platform.

We greatly value the feedback provided by our esteemed user community during this testing phase. Your input is invaluable in refining and optimizing the platform, ensuring exceptional performance and an unparalleled user experience prior to the official mainnet launch. We encourage all users to actively participate in the testing process and contribute their valuable feedback through the dedicated channels provided on the Adadao testnet v2.0. Together, we will shape the future of decentralized Stablecoin platforms on the Cardano blockchain.

How to Participate

Adadao testnet V2.0 is currently compatible only with Nami wallet.

Follow these easy steps:

  1. Install NamiWallet.

2. Change your network to “Preprod.”

3. Add test $ADA to your wallet using the faucet link: https://docs.cardano.org/cardano-testnet/tools/faucet….

4. Add collateral to your NamiWallet.

5. You’re all set to work with Adadao’s testnet https://test.adadao.org.

Watch this video for guided tour.

Adding test ADA

You can get test Ada from Cardano testnet faucet.

Please make sure to select environment as Preprod Testnet and provide wallet address in address textbox.

What’s next?

We have compiled a comprehensive list of features and enhancements that we are currently evaluating before launching the Adadao protocol on Mainnet. Each of these features/tasks is being carefully assessed, and we will classify them as either mandatory or optional in terms of their importance for the Mainnet launch. Our focus at this stage will be on developing the mandatory tasks, while optional features will be developed after the Mainnet launch.

To provide you with a detailed understanding of these features and their significance in addressing specific challenges, our team will publish a forthcoming medium article. This article will elaborate on each feature, its intended purpose, and how it contributes to solving relevant problems. Furthermore, it will clearly outline which mandatory features we plan to develop before the Mainnet launch, as well as the optional features that will be pursued post Mainnet launch.

In addition to the above, we are also considering the integration of additional light wallets such as Flint, Eternl, Gero, Nufi, among others, to further enhance the usability and accessibility of the Adadao platform.

The following are some of the key features and tasks we are evaluating:

  1. PSM (Peg Stability Mechanism) and Redemption Mechanisms: Assessing mechanisms that maintain the stability of the pegged stablecoin and enable users to redeem their stablecoin holdings as needed.

2. Auxiliary Liquidation Approaches: Exploring additional methods for handling liquidations, such as debt auctions and redistribution mechanisms, to ensure the stability and integrity of the platform.

3. Replace Single Oracle with Oracle Pool: Evaluating the feasibility of transitioning from a single oracle to an oracle pool, which can enhance the reliability and security of external data sources.

4. Emergency Shutdown: Implementing a mechanism for emergency shutdown to address unforeseen circumstances or system vulnerabilities.

5. Governance Contract and Onchain Staking: Developing a governance contract and onchain staking capabilities to enable community participation and decision-making within the Adadao ecosystem.

6. Liquidation Epoch Crossing: Examining the ability to seamlessly transition liquidation epochs, ensuring the efficient and timely execution of liquidation processes.

Furthermore, we recognize the importance of conducting both economical and technical audits to ensure the robustness, security, and compliance of the Adadao protocol.

We remain committed to delivering a resilient and user-centric platform. As we progress with the evaluation and development of these features, we will continue to keep our community informed through the medium article and other channels. Your continued support and feedback are invaluable as we work towards the successful launch of Adadao on Mainnet.

About ADADAO

ADADAO ($ADAO) is a decentralized finance (DeFi) protocol on the Cardano blockchain that enables the creation of fully collateralized stablecoins, utilizing Native Cardano Assets. ADADAO operates as a Decentralized Autonomous Organization (DAO). The protocol features a unique design, incorporating the following key attributes:

  • It is interest-free. Once the user pays a one-time fee for protocol usage, they may keep the loan as long as the collateral is maintained.
  • Liquidations are processed through the stability pool, a collection of AUSD stablecoins staked by users to facilitate liquidations at a fixed price. The penalty from liquidation is proportionally distributed to the stakers.

What problems does ADADAO solve?

To date, there are no on-chain collateralized stablecoins on the Cardano blockchain. Moreover, current protocols on other blockchains require users to pay high interest rates on borrowed assets, resulting in substantial risks in leveraging. The liquidation process is often unclear and involves an internal auction mechanism, which obligates protocols to initiate liquidation at a higher liquidation ratio to compensate for the uncertainty in realizable value.

ADADAO Official Socials

To find out more about the project and keep up with its latest developments, follow their official channels.

Website | Twitter | Telegram | Medium

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