Adadao, a decentralized stablecoin platform built on Cardano, is excited to announce the release of its first testnet version, which is now live at https://test.adadao.org/login. This testnet provides users with the opportunity to test and provide feedback on the platform’s key features including-

• Stablecoin issuance ($AUSD).
• Vault creation, activation and closure.
• Collateral Deposit , lending and withdrawal.
• Oracle functionality.
• Liquidation functionality.
• Deposit to Stability pool and rewards functionality.

The feedback received during this testing phase will be used to improve the platform further before its mainnet launch.

How to Participate

Although this testnet was originally designed for internal and exclusive testing purposes, we have decided to release it to the public at the request of our community. This will allow the community to gain insight into our development process and evaluate their experience with the Adadao protocol. We have already published a comprehensive user guide in a previous Medium article, which can be accessed here.

To facilitate testing, we have created 20 PAB-based user accounts. We have provided a detailed list of users, their login credentials, associated Cardano wallets, passphrases, and other relevant information in a Google sheet, which is available below.

Testnet website link — Website.

User login credentials — Link.

System script addresses — Link.

Note- Your cooperation is crucial to the success of this testnet. If you encounter vault has already been created after log in using one of provided credentials, it means that another user is already working with that credential. In such cases, we kindly ask that you try another set of credentials that have not yet been associated with a vault.

Additionally, we kindly request that, once you have completed your testing, you settle any debts and close the vault before logging out. This will ensure that other users can begin their testing with the same credentials, without the risk of overriding the work of previous users.

Adding test ADA

If you come across this error while creating the vault, it indicates that you do not currently possess tAda (Test Ada) in your user wallet. In order to continue protocol testing, you will need to add test Ada to your wallet. The corresponding wallet address for each user can be found on the user credential sheet.

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.

Limitations of testnet

It is essential to understand that this is the first version of the testnet, which has some limitations and shortcomings.

• very limited number of users due to the use of PAB and Cardano wallet. Running more PABs requires a high server usage, as PABs cause significant memory leaks. Due to the limited number of users, there may be multiple individuals testing the testnet with the same login and password, which could override previous executions.
• Slow executions- you may observe transaction delays on the pre-production testnet. If you receive an error message such as “Cannot read properties of undefined,” it likely means that the blockchain has not yet seen the result of a previous transaction. In this case, please wait for a while and try again.
• Unstable environment- The environment on the testnet is also unstable since PAB works erratically, resulting in memory leaks. We have configured regular automatic updates within a certain time period to mitigate this issue. If a transaction fails to go through the first time, wait a few minutes and try again. If the transaction still doesn’t go through after several attempts, please let us know, and we will restart the PAB manually.
• Typos and weird error messages- During testing, you may come across typos and peculiar error messages. Please disregard these, as our focus has been primarily on making the code work. These are cosmetic changes and will not appear in the final release.

What’s next?

By the time we were developing the protocol , tools for working with light wallets on testnet were not available, and consequently, we utilized PAB and Cardano native wallet. However, a solution has since emerged on Cardano, which will enable us to remove PAB and Cardano wallet from the app, and instead, allow it to function with browser wallets such as Nami. Our next step is to launch testnet v2.0 with browser-based wallets, which will make the Dapp more scalable and user-friendly. We have already commenced work on this, and we will provide regular updates on this development in our weekly technical reports.

We cordially invite users to join our testnet and contribute to the development of the future of Stablecoins.

The Adadao team is committed to providing a secure and decentralized Stablecoin platform for users, and we eagerly anticipate your involvement in our testnet.

Feedback

We highly value your input and would greatly appreciate your feedback. Please take a moment to share your thoughts and suggestions with us by clicking on this link. Thank you for taking the time to help us improve our product.

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.