Welcome to the our uADA introduction. uADA is a unique liquidity provision solution on Cardano, which has the functionality of providing liquidity to DEXs and facilitating loans, while allowing users to retain full control of their staking keys. As we approach our mainnet launch, we are excited to unveil this solution.
Announcements
- Incentivized Testnet is live and ends in 4 days.
- Our official roadmap is now live.
- Tokenomics and mainnet date to be announced within the next week.
Introduction
A few days ago, we released our official roadmap, where we explained our past and present plans. One aspect of our roadmap introduced our new liquidity provision solution — we call it uADA.
We believe this has the potential to alter how liquidity provisioning is done on Cardano DeFi, both for decentralized exchanges and lending protocols alike.
A Unique Solution in Liquidity Provision
We are excited to unveil a sub-product within our ecosystem, aptly named “uADA” — which stands for “ADA that belongs to ‘U’ (you).”
In laymans terms, Cardano DeFi currently faces a problem where ADA locked in a DeFi ecosystem belongs entirely to the smart contract its locked in, and in doing so, the smart contract has rights to the staking keys, meaning it chooses where to delegate, and the ADA staking rewards “belong” to the smart contract.
uADA solves this hurdle and 1.) allows Cardano users to participate in Cardano DeFi and retain their staking keys (i.e. choose where to stake) and 2. earn their full ADA staking rewards directly to their wallet.
Additionally, it also means you retain full control of your voting power for events such as Catalyst or potentially any DUST airdrops (TBA).
While uADA is a TeddySwap product, this can extend across all Cardano DEXs and lending platforms, meaning anyone would have the ability to participate in Cardano DeFi while retaining their full staking power.
Furthermore, we plan to offer the ability to convert ADA to uADA and provide liquidity to uADA/token in one transaction, creating a seamless trading experience.
uADA Architecture
This new mechanism reimagines liquidity pairing by providing an alternative to the traditional use of ADA in TOKEN/ADA liquidity pairs.
The core idea behind uADA is to allow users to lock their ADA in a smart contract while retaining full control over the staking keys. Here’s how the uADA model works:
1. ADA Lock-In: Users lock their ADA into a designated smart contract specially designed for the uADA system.
2. Mint uADA: Upon locking ADA, users mint an equivalent amount of uADA tokens, representing their locked assets on a 1:1 basis.
3. Maintain Staking Control: Even while their ADA is locked, users maintain control of their staking keys, allowing them to earn staking rewards as though the ADA remained in their possession.
4. Liquidity Provision: uADA can be supplied to liquidity pools in the place of native ADA, supporting TOKEN/uADA pairs and maintaining liquidity on the exchange.
5. Freedom to Reclaim: Users can reclaim their original ADA at any time by burning their uADA tokens and simultaneously claiming any staking rewards accrued during the lock-in period.
uADA’s structure serves to enhance the liquidity provider’s experience by:
• Preserving the inherent utility of ADA, allowing it to continue to participate in the Cardano network’s staking system.
• Offering liquidity providers the opportunity to earn both trading fees from liquidity pools and staking rewards without having to choose between the two.
• Maintaining a fungible relationship between ADA and uADA, ensuring seamless interactions within the TeddySwap ecosystem.
The introduction of uADA is set to seamlessly blend the principles of decentralized finance with the innate features of Cardano’s ADA, providing an elegant solution that acknowledges and maximizes user autonomy over their investments.
As stated in our roadmap, we plan to launch uADA in 2024.
Conclusion
Thank you to our community for your support thus far.
We are excited to continue our progress as we looking forward to our mainnet launch and beyond.
For more information on TeddySwap:
Testnet | Website | Twitter | Discord | Docs | Github | Linktree
