Lending System

V2 introduces a new Lending AMO (Algorithmic Market Operation) that allows the protocol to mint OADA against non-ADA collateral using FluidTokens V3 fixed duration loans.

Previously, OADA issuance was exclusively ADA-backed (ADA 1:1 OADA) or emerged via staking/DEX AMO profits. OADA V2 extends system functionality to enable a portion of system assets to be allocated through a decentralized credit facility whereby users essentially mint the OADA stablecoin against whitelisted Native Assets via the FluidTokensV3+Optim integrated system. The defining characteristics of this lending system are as follows:

• Loans are fixed duration, not continuous

• Loans can be refinanced at the end of loan duration

• All underwriting, interest rates, and capacity limits are sequencer-controlled (off-chain) with ODAO governance guarding parameter changes

• sOADA holders act as a true junior tranche: they bear profits and losses.

This scales OADA issuance while giving the system a controlled, bounded-risk mechanism to expand supply.