Aurigami is lend, borrows, and earns with ease on Aurora. The native money market on Aurora. Let’s explore anything about Aurigami with Nearity.
Aurigami is a non-custodial liquidity mechanism that is decentralized. The protocol lets users to lend, borrow, and earn interest on their digital assets easily. Depositors contribute liquidity to the protocol in order to receive a passive income, while borrowers can borrow in an over-collateralized method.
The number of Aurigami’s TVL (Total Value Locked) is $13.79M and Aurigami is the 2nd largest lending project in the Aurora ecosystem
What are the features of the Aurigami?
There are no minimum or maximum deposit requirements. Users may remove assets as long as the funds are not actively being used to borrow and the withdrawal does not result in the liquidation of your debts. Aurigami allows for the use of assets as collateral. Besides, Depositors will get ongoing profits (interest) on their holdings. Earning rates for each asset are algorithmically adjusted based on their respective market circumstances.
The auToken represents the user’s asset balance as provided by the Aurigami protocol. The underlying asset uploaded to the protocol will be used to generate the auToken (auUSDC, auDAI etc). As more interest is generated in the market, the exchange rate between auTokens and the underlying increases.
Borrow / Repayments
To borrow assets on Aurigami, the user must deposit an acceptable asset to be utilized as collateral. By default, the deposited asset will be activated as collateral for borrowing.
Borrow Limit (BL) shows your percentage of the maximum amount you may borrow, depending on the value of collateral deposited and available liquidity. BL equals 100% borrow utilization.
Borrow utilisation (BU) is a visual indicator of the proportion of total deposited collateral to total borrowed assets, or how near the position is to being liquidated.
- BU < 75%: Green (Relatively safe)
- BU between 75% to 90%: Orange (Please pay closer attention to positions)
- BU from 90% to 95%: Red (Let’s improve BU)
- BU > 95%: High risk of liquidation
To improve Borrow Utilisation, the user can: Repay a portion or the full amount of the borrowed amounts and add more collateral.
PLY is Aurigami’s governance and utility token.
Token Standard: Updating…
Token Type: governance and utility.
Circulating Supply: Updating…
Total Supply: 1.3B
Liquidity mining: 40%
Initial Exchange Offering: 5%
Exchange Liquidity: 4%
Strategic Investors: 19.5%
How Does Aurigami Work?
First of all, users must deposit tokens that the protocol accepts. The protocol assigns assets to smart contracts after a user deposits them. After that, lenders will receive auTokens equal to the value of their deposits. Lenders will need to use auTokens whenever they need to withdraw funds from the liquidity pool. These coins can also be traded and transferred.
Secondly, Lenders will earn interest on their deposited assets indefinitely. An algorithm adjusts the earnings for each asset based on its own market conditions. As the market gains traction, the exchange rate between auTokens and the underlying assets rises, and vice versa.. Aurigami does not have a minimum or maximum deposit amount. To borrow money on Aurigami, go to the “Deposit” tab under “My Account” and enable the use of deposited assets as collateral. When a borrower completes this step, the platform will update their Borrow Limit based on the collateral available. The borrow Limit is equal to 100% borrow utilization. Borrowers must keep this delicate balance in order to avoid liquidation. Aurigami will liquidate the deposited assets that a user agreed to use as collateral once a borrower’s borrowed position exceeds the Borrow Limit.
Last but not least, users can increase their collateral by depositing more funds to improve borrow utilization. Alternatively, they can repay a portion or the entire amount of the borrowed funds.
Aurigami received $12M in funds raised from famous VCs such as:
- $9,5M raised via private token sales co-led by Dragonfly Capital and Polychain Capital.
- $2,5M raised via an initial exchange offering (IEO) on KuCoin, Bybit, and Impossible Finance.
Moreover, Aurigami also has Angels Investors including Mechanism Capital, Jump, QCP Captial, Folius Ventures, and so on.
Aurigami has partnered with a lot of potential projects like Kucoin, Bybit, Huobi, Impossible Finance, etc. That will help Aurigami build a thriving DeFi ecosystem with them. More detail about these collaborations are below:
- Aurigami collaborated with Kucoin, Bybit, Huobi, and Trisolaris to list $PLY on those exchanges.
- On Aug 2nd, 2022 Aurigami and Pinkpea Finance single-sided Partner Pool Phase II are now available that helps people can stake a pool pair $PEA+$PLY.
- The Aurigami user interface now includes the ETH-AURORA Rainbow Bridge. This is the first step toward Aurigami being the one-stop shop for Aurora user onboarding. Moreover, Aurigami will offer a set of functions that will act as a one-stop shop for users entering Aurora.
The Papermill is a forthcoming feature that has people excited. It is a system that combines game theory and economic modeling. Papermill participants are rewarded for HODLing. In this patience game, The reward for gamers is based on how long they HODL. They HODL for as long as they can claim $PLY.
Audits and Protocol Security
The audits and security of Aurigami are Risk Dao, WatchPug, and Lending Markets Bad Debt Ranking. Auditing and security will help users trust Aurigami more. This also makes Aurigami 3rd in Aurora’s top TVL. Not only that, but they will also try harder for the community to put all their trust and use their products.
Thus, Nearity/Aurority introduced you to the project and provided an overview of the Aurigami project built on Aurora Ecosystem. What do you think about this project? Please share your opinion below to discuss with us!