Founded in late 2021, Aurigami is a decentralized, non-custodial, native money market on the Aurora Network, the NEAR Protocol’s EVM chain. It allows users to lend, borrow, and earn interest on their digital assets in a fun, gamified ecosystem.
What is Aurigami?
Aurigami takes inspiration from the Japanese word “origami”, the art of paper folding which is a fun and creative activity. In origami, the artist masterfully orchestrates the movements of the paper to create a work of art that is greater than the sum of its parts.
Similarly, the team behind Aurigami aims to do the same for clients’ crypto assets, enabling them to maximize returns while making it a fun and interactive experience through gamification.
While depositors provide liquidity to the protocol to earn passive income, borrowers can borrow overcollateralized. Additionally, Aurigami users can simply deposit assets supporting the protocol to earn interest between 8% and 12%.
The Aurigami Protocol supports the nine largest assets in the Aurora ecosystem and has already established itself as one of the premier protocols on Aurora with over $900 million in total locked.
The protocol supports assets like ETH, Wrapped BTC, and stablecoins like USDC and USDT.
Aurigami played a critical role in identifying and resolving a critical gas boundary issue that was hampering the Aurora network this year. The platform escaped unscathed from the recent flux oracle problem that led to erroneous liquidations affecting many other protocols.
This was the result of implementing the system from the start as the Aurigami team recognized the risks associated with DeFi and constantly focused on staying ahead of the safety curve.
Features of origami
tokenomics
The native Aurigami token is $PLY, which aims to energize ecosystem participants and share a vision of alignment between different stakeholders within the Aurigami ecosystem.
By holding the token, PLY HODLers (#Papeurhands) also have the opportunity to rule the ecosystem.
PLY on Aurora: 0x09c9d464b58d96837f8d8b6f4d9fe4ad408d3a4f
PLY on Ethereum: 0x1ab43204a195a0fd37edec621482afd3792ef90b
A total supply of 10 billion PLY will be divided as follows:
- Liquidity reduction – 40%
- Strategic Investors – 19.5%
- Team – 19%
- Government Bonds – 12.5%
- First exchange offer – 5%
- Stock market liquidity – 4%
LLT (Liquid Locked Token)
PULP is the biggest USP in the Aurigami protocol, also known as the Liquid Locked Token concept. PULP is a representation of locked PLY. Holding PULP entitles users to redeem it for PLY at a later date.
Meanwhile, like other liquid tokens, the locked PLY or PULP can be freely traded or exchanged for other digital assets, making PULP a “Liquid Locked Token” (LLT).
In the past, some protocols have successfully provided liquidity for blocked vested assets through the use of financial NFTs.
There was a requirement that the need to accommodate a set of parameters justifies the use of NFTs, which can be encoded with complex information that cannot otherwise be achieved with the usual ERC-20 tokens.
On the other hand, Aurigami’s PULP could be developed as an ERC-20 token to represent locked-PLY, which allowed the team to approach liquid locked tokens easily.
LLT innovation
Aurigami pioneered Liquid Locked Tokens (LLT). Distributing a combination of LLTs (i.e. PULP) and the underlying protocol tokens (i.e. PLY) in liquidity extraction discourages the typical “farm and dump” approach followed by mercenary capital.
This allows protocols to balance their long-term interests with those of their users.
The PULP and PLY market is driven by game theory, in which users are empowered to apply investment strategies at their discretion. Buyers can take long-term positions in PLY at a discount through PULP, while PULP owners can sell in exchange for immediate liquidity.
Additionally, the extended release of PLY into circulation helps disperse the selling pressure that plagues many stimulus programs and opens up speculation for savvy investors.
LLT is a new design that can solve an issue that early liquidity mining programs failed to address. Similar to veTokens, LLT is what protocols can integrate to align long-term interests between users and protocol.
There are already many instances where OTC trades between protocol treasuries and investors are completed at a discount on the token in exchange for a fixed lock-up period during which the underlying token cannot be traded.
The mechanics of LLTs mimic exactly this, which is expected to enable the potential for future deals in the burgeoning crypto industry.
How do I get started with Aurigami?
To interact with Aurigami, users first deposit their favorite assets supported by the protocol. Not only does this allow users to earn interest based on the loan demand of the market, but users also use deposited assets as collateral to borrow other assets.
In doing so, interest from deposited assets will help offset the accrued interest from borrowing.
- Funds deposited by the user are allocated in smart contracts.
- Both depositors and lenders receive tokenized high-yield tokens, called auTokens, which are used for on-demand withdrawal of deposited funds from the pools. In addition, auTokens are also tradable and transferable.
- In order to deposit the digital assets, users need to go to the market page, select the asset, then click “Deposit” and enter the amount of the asset to be deposited.
- Finally, click on “Approve” and wait for the transaction to be confirmed. There are no minimum or maximum deposits set.
- Then users start earning interest on the deposited amount.
- Depositors receive continuous returns on their deposited assets and return rates adjust algorithmically for each asset based on their market conditions.
- The auToken is a representation of the user’s asset balance that is delivered to the Aurigami protocol.
Users can withdraw assets as long as those funds are not actively being used for loans and withdrawing those assets would not result in liquidation of their loans.
- In order to withdraw the digital assets, you need to navigate to the “Deposits” tab in the “My Account” section. Click “Withdraw” and enter the amount of funds to be withdrawn, then click “Withdraw” again.
- To borrow assets on Aurigami, a user must deposit an accepted asset to be used as collateral.
- The maximum amount that can be borrowed depends on the number of collaterals in the user’s account, which is shown as “Borrowing Limit” in the “My Account” section.
- On the other hand, repayments can be made directly under “Loans” under “My Account”. To do this, navigate under “My Account” to the “Borrowing” tab.
- Click “Redeem” to view the amount of the asset to be redeemed and make sure your wallet has enough funds for it. Then click “Refund” again.
- To bridge assets from Ethereum to Aurora. You need to go to https://rainbowbridge.app/transfer.
- Choose Transfer from Ethereum and Transfer to Aurora, connect your wallet and click “Start new transfer”. Then click View All Tokens to select the tokens you want and enter the amount and click Next.
Have fun farming with Aurigami
Compared to its competitors, the Aurigami protocol offers a smooth and simple user interface to make depositing and borrowing easier for users.
Also, yield farming has one of the highest deposit rates and lowest borrowing rates on Aurora. Any developer on Aurora can use Aurigami as a building block for their product by accessing its liquidity.
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