Ardana Ecosystem

Ardana is an on-chain asset-backed stablecoin protocol and decentralized exchange stable asset liquidity pool built on Cardano. The stablecoin is overcollateralized with on-chain Cardano native assets, facilitating borrowing. The decentralized exchange allows for highly capital-efficient trading between stablecoins and identical assets with low-risk income for liquidity providers from fees. Ardana is a decentralized exchange stable-asset liquidity pool, an on-chain asset-backed stablecoin protocol.

Ardana’s cornerstone is the Ardana Dollar (dUSD), a decentralized, on-chain, asset-backed stablecoin that allows users to mint, spend, send, and receive dUSD across the Cardano blockchain. Every single dUSD is backed directly by user deposited collateralized assets, such as ADA tokens. Instead of needing to convert ADA directly into stable currency to allow purchasing of other Cardano assets, a user can deposit their ADA into an Ardana vault to receive a proportion of its value back as a freshly minted dUSD loan. Later, when the dUSD is returned, the user’s ADA is released. Small fees apply for the loan. Decentralized lending empowers people with control of their own latent spending power.

Stablecoin

Ardana Vaults will allow users to generate stablecoins against locked Cardano native token collateral deposited in our vaults. Ardana Vaults is a non-custodial & permissionless protocol and all generated stablecoins are backed on-chain by an excess collateral

dUSD is easy to access, generate and use. Users generate dUSD by depositing collateral assets into vaults within our protocol through unique smart contracts known as Collateralized Debt Positions (CDPs). This is how dUSD is entered into circulation and how users gain access to liquidity. Others obtain dUSD by buying it from brokers or exchanges, or simply by receiving it as a means of payment. Once generated, bought, or received, dUSD can be used in the same manner as any other cryptocurrency. It can be sent to others, used as payments for goods and services, and even held as savings.

Every dUSD and/or its corresponding currency variant in circulation is directly backed by excess collateral, meaning that the value of the collateral is higher than the value of the dUSD debt and all dUSD transactions are publicly viewable on the Cardano blockchain.

Stable Pool DEX

Danaswap is a decentralized exchange designed to achieve high speed & ultra-low slippage multi-asset swaps between stablecoins and stable assets using multi-asset liquidity pools. Danaswap is an automated market maker (AMM) that automatically adjusts the concentration of a pool’s liquidity within a fixed range in order to create a tight spread between assets in the liquidity pool. This enables swaps to incur minimal slippage & fees without compromising the revenue of liquidity providers.

Danaswap

An automated market maker (AMM) decentralized exchange for stable multi-asset pools. Danaswap is highly capital efficient enabling swaps with minimal slippage while providing low-risk yield opportunities for liquidity providers.

Ultra-low Slippage: Swap between stablecoins and stable assets such as wrapped/synthetic Bitcoin with minimal slippage.

Savings Account: Deposit Ardana stablecoins to earn passive income through interest payments.

Earn Trading Fees: Deposit your assets into a DanaSwap pool and earn a proportion of the market making fees.

Foreign Exchange: Swap between international stablecoins such as dUSD, dEUR, dGBP and more.

Key Terms

Collateral-to-loan Ratio (CTL) This is the ratio between the value of the collateral and the outstanding value of the stablecoin loan. It can easily be calculated by dividing the value of the collateral by that of the loan. Users should note that their CTL can change according to changes in the price of their collateral, and in changes to their loan value, which will decrease when the user repays some or all of the debt, otherwise it will gradually increase per the respective vault’s stability fee.

Liquidation Ratio (LR) This is the minimum CTL that a vault can have before it is liquidated. Any vault that has its CTL drop below the LR will be liquidated.

Stability Fee The stability fee is the interest rate for stablecoin vaults. Each vault will have its own stability fee. The stability fee will be charged based on the initial outstanding stablecoin debt for every CDP opened.

Liquidation When a vault’s CTL drops below that of LR it is liquidated. When a vault is liquidated its collateral is auctioned off to bidders who bid to purchase that CDP’s collateral at a discount by paying that CDP’s outstanding stablecoin debt

Liquidation Penalty The liquidation penalty is a percent-based fee that is charged on the collateral for all liquidated vaults. This is fee is meant to incentivize users to maintain a healthy CDP, and to cover the discount that will be given to liquidators.

Interacting with Ardana Vaults

In order to generate dUSD (or any Ardana stablecoin), a user will need to head to Ardana Vaults in the Ardana dApp. Ardana Vaults are the repositories that are used to secure loan collateral (ie. the CDP). Assets that are accepted as collateral can be leveraged to mint Ardana Stablecoins using smart contracts triggered through the Ardana Vaults.

A vault contains a single Cardano Native Token, and a user may have any number of vaults open for different Cardano Native Tokens.

A user interacts with a vault and creates a CDP by depositing approved collateral into a vault, once assets have been deposited into the vault, a user can generate Ardana Stablecoins against his collateral up to a cap. Once generated, the user will need to repay the principal debt plus the interest before he can release his collateral.

Process Overview of Creating a CDP and Repaying the Debt

• Create & collateralize a vault: Bob creates a vault using the Ardana platform and funds it with an approved asset —in our example ADA— to the value of $15,000.
• Generate stablecoins against the collateralized vault: Bob generates $5,000 worth of dUSD against his collateral, making his CTL 300%
• Repaying the principal stablecoin debt & the stability fee interest: Let us assume that Bob used a vault that charges a 3% stability fee, and that he wishes to repay his loan after 6 months. In this case, his outstanding debt will be 5000+5000*(0.03*0.5), which is 5075. Bob repays his principal (5,000) and his stability fee interest (75), and he can now withdraw his ADA collateral from the vault.

Top Up: Additional collateral may be added to a vault to ensure the loan is sufficiently collateralized or to extend the loan, provided it is in the same native token asset as the initial deposit. This is an important facility, especially in the case where a user needs to maintain the loan but the market value of collateral falls. Conversely, if the collateral asset value rises, a user may choose to repay only part of the dUSD, release some collateral and maintain the loan rather than liquidating it completely.

Liquidations

When a vault’s CTL drops below the LR it will then be liquidated. A liquidated vault will have its collateral auctioned off in a process known as a “collateral auction”. During collateral auctions, liquidators bid against each other to repay the undercollateralized vault’s stablecoin debt in exchange for receiving the vault’s collateral at a discount. A liquidated vault will then be charged a liquidation penalty, which will be taken from the vaults underlying collateral.

Liquidations From the Perspective of a Vault Owner‌

In our example, we will use an ADA vault with a 200% LR, and a 20% liquidation penalty we will ignore the stability for the sake of simplicity, though it can be calculated for any time-frame since the CTL is a function of the collateral value and the loan value, and the stability fee can easily be calculated for the loan value of the simple equation.

• Alice creates our aforementioned vault on the Ardana platform and collateralizes it with $22,000 worth of ADA, with each ADA token being worth $10
• Alice Generates $10,000 worth of dUSD, making her CTL 220%. The value of ADA drops 10%, making her collateral worth $19,800. (We will assume that this is the price tick in which the liquidation is triggered and the auction is performed and triggered for the sake of simplicity)
• Alice is charged a 20% liquidation penalty on her $19,800 collateral, leaving her with 19,800-19,800*0.2=$15,840 worth of ADA, and no outstanding debt. 

Tokenomics

The Ardana token (DANA) is the utility and governance token of the Ardana ecosystem which provides stakers with access to a share of the fees from Ardana and allows those who hold it to vote on changes to the project’s parameters.

DANA is a Cardano Native Asset, users will be to obtain DANA either in the open market or through participation in any of Ardana’s various liquidity mining programs.

In order to exercise the governance & utility value of DANA, users will have to time-lock their DANA in the Ardana Reward Enhancement Module (AREM) where in exchange they will receive exDANA which will be described in the following section.

Token Distribution

Token Sale: 35,625,000 – 28.5%

Exchange Liquidity: 6,250,000 – 5%

Founders, Team and Advisors: 18,750,000 – 15%

Ecosystem Development and Treasury: 14,375,000 – 11.5%

Liquidity Mining Rewards: 50,000,000 – 40%

How and Where to Buy DANA token?

DANA has been listed on a number of crypto exchanges, unlike other main cryptocurrencies, it cannot be directly purchased with fiats money. However, You can still easily buy this coin by first buying Bitcoin, ETH, USDT, BNB from any large exchanges and then transfer to the exchange that offers to trade this coin, in this guide article we will walk you through in detail the steps to buy DANA token.

You will have to first buy one of the major cryptocurrencies, usually either Bitcoin (BTC), Ethereum (ETH), Tether (USDT), Binance (BNB)…

Source: Coin Introduction <https://morioh.com/p/3a05c8a8d7aa>