To provide a forum for investors and new users to ask various questions about the platform and its strategic partners, Coinswap Space implements a regular AMA (Ask May Anything) session. The activity helps to build awareness and establish solid relationships between the CSS and team together with its partners and the crypto community, allowing investors to make well-informed decisions about their crypto investments.
During the past months, Coinswap Space has already held AMA sessions with its launchpad partners, including Shibu, Openlive NFT, Metaverse Lab, MovieBiz, and DxSpot.
This time, Coinswap Space had the pleasure of participating in another AMA in conjunction with the world’s first interest-free stablecoin protocol — the ADADAO. The AMA event happened in the CSS Telegram community channel on February 21, 2022.
As a new launchpad partner of Coinswap Space, the ADADAO protocol aims to facilitate the creation of fully collateralized stable coins leveraging native Cardano assets as it is scalable, interoperable, and sustainable, bringing volatility-free, mobile, and accessible stablecoin to the DeFi space.
The AMA session started when CSS Digital Marketing Head, Mr. Mark Anthony Wagan, welcomed the guest, Mr. Murshid Alam, and asked him to introduce himself. Mr. Murshid Alam is the CTO of ADADAO. As one of the co-founders, he has over 5 years of experience in the field of blockchain technology and had previously worked at leading IT consulting firms like IBM and TCS. This was
The CSS team got loads of wonderful questions from the community members but unfortunately, questions were narrowed down to five. The following is the compilation of questions answered by Mr. Alam.
Question №1: ADADAO is the first stablecoin project based on interest-free loans. This sounds amazing, but my question is: if your loans are not interest-based, how can your project be profitable for your team? How does ADADAO generate profit as a platform?
Adadao generates its revenue through one-time borrowing fees (0.5%) that the protocol charges users for borrowing stablecoins and also through liquidations that take place in the protocol.
ADAO holders can basically earn passive income through staking.
Question №2: What can we expect in the next 3 months regarding the development/progress and where can we see ADADAO by the end of 2022?
We have a great vision when it comes to the development of the project. In the next few months, we are looking forward to ending this fundraising phase this month and moving on to listing our tokens on CEXs and Cardano DEXs. We have already started the development of the protocol and designed the MVP. We will launch our staking platform and keep the development work ongoing on our MVP. After that, we will move on to create a DAO and transfer control to it in phases. Then through governance more collateral tokens and more pegged Stablecoin will be realized. This is a brief overview of what is to come next. With all these development, more and more great partnerships, collaborations and listings will be seen.
We have a great vision for the project’s development. We anticipate concluding this fundraising phase this month and listing our tokens on CEXs and Cardano DEXs in the next months. We’ve already started developing the protocol and creating the MVP. We will launch our staking platform and continue to enhance our MVP. Following that, we’ll establish a DAO and gradually shift control to it. Then, via governance, further collateral tokens and pegged stablecoins will be created. This is a brief overview of what is to come. With all these developments, we should expect to see an increase in the number of fantastic partnerships, collaborations, and listings.
Question №3: How is your interaction with vault? And what is the process of creating and interacting with the ADADAO Vault?
ADADAO Vaults are the repositories that are used to secure loan collateral. Assets that are accepted as collateral can be leveraged to mint ADADAO stablecoins using smart contracts triggered through the ADADAO Vaults. Users can generate stablecoins while also preserving their investments in ADA. This helps them to generate liquidity out of the assets they are holding. As AUSD is a fully collateralized stablecoin, we need to make sure that collateralization is always maintained. In case of market volatility, sometimes the value of the collateral may fall below the required minimum level (the liquidation ratio), users interact directly with Vaults and the ADADAO Protocol, and each user has total and independent control over their placed collateral as long as the value of the collateral does not fall below the required minimum level (the liquidation Ratio). If the collateral value (in USD) goes too low, the vault is automatically liquidated. Then the Protocol auctions off a portion of the collateral to cover the outstanding debt plus the liquidation penalty and the protocol also burns AUSD to deplete the supply. The collateral that is left over is given to the vault owner. Liquidations make sure that AUSD is always over the collateralized asset.
Question №4: How your stable token will maintain its price in a volatile market with much selling pressure if any, and how backed are the assets for your stable tokens AUSD work, is there any relation between ADAO and AUSD?
In case of emergencies, to maintain the peg, we are designing a highly advanced redemption mechanism. AUSD is the stablecoin while ADAO is the governance token of this protocol.
Question №5: ADADAO chose Cardano blockchain as a base over many others. My question is, does Cardano blockchain have the capabilities and features to meet ADADAO’s needs? Is it secure enough for your project? How stable are its smart contracts? And what have been so far the benefits and advantages that Cardano has provided to ADADAO?
Cardano is one of the most secure with clean architecture and it is thoroughly tested. This blockchain is pioneered and worked upon by great tech leaders and scientists doing tireless research on Cardano which gives it an upper hand over other blockchains. IOHK has recently tweeted about one of our sales. Our CEO is in touch with the IOHK team (IOHK founded Cardano).
During the Q&A session, Mr. Murshid Alam thanked the CSS team for the invitation and praised the community for the interesting questions raised. He concluded by adding that crypto is an ocean full of opportunity and that you must be careful not to get lost in it. Always DYOR and have a presence of mind while joining the journey of any project. Sometimes, a beautiful-looking apple is rotten from inside and sometimes you can find pearls from dirty mud.
The AMA with ADADAO has gotten a lot more interesting. The guest is great, and the community people are highly engaging.
The CSS team wishes the investors and the ADADAO team success. Until the next AMA session and see you all on the upcoming ADADAO IDO here in Coinswap!
