Ardana is a decentralized stablecoin hub that will bring the necessary Defi primitives needed to bootstrap & maintain any economy to Cardano.
Upcoming partnership with Near Protocol
Ardana, Cardano’s growing stablecoin hub, announced a strategic partnership with Near protocol on Tuesday. The partnership allows for asset transfer between the two protocols in which Ardana will provide the bridging infrastructure.
Using proof-of-stake consensus, Near already works alongside Ethereum, Polkadot, Cosmos and others. Adding Cardano to its portfolio of gen-three blockchains will bolster the network and bring further integrations between Cardano’s partners such as Ardana.
“NEAR’s vision always envisioned a multi-chain world, whereby each blockchain could seamlessly talk and exchange data between one another. Ardana to aid in the creation of a multi-chain world, and integrations like this help realise that goal,” said Erik Trautman, CEO of NEAR Foundation.
The partnership for NEAR follows a string of partnerships over the past six months, including Alchemy Pay, Ceramic and Octopus Network.
Functions of Ardana
DANA is the utility and governance token of the Ardana platform and it has functions, including:
- Staking: Holders can stake their ADA tokens to be rewarded a share of protocol fees on Ardana.
- Governance: DANA holders are able to participate in the governance of Ardana to vote on parameters changes.
- Liquidity Mining programs: 40% of the DANA total supply will be distributed via the Liquidity Mining programs. In the future, the team will release the plan for users to participate.
How does Ardana work?
Stablecoin dUSD is the primary product of Ardana, which is crypto-backed and pegged 1:1 to USD. Basically, the working principle of dUSD is CDP (Collateral Debt Position) which is similar to stablecoin DAI issued by Maker DAO.
Users deposit ADA or other supported tokens as collateral into Ardana Vaults to borrow Ardana stablecoin (dUSD). Once borrowed, users need to repay the debt plus the additional interest to redeem the collateral.
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