Created at the end of 2021, Aurigami is a decentralized, non-custodial native money market on Aurora Network, the EVM chain of the NEAR protocol. It allows users to lend, borrow and earn interest with their digital assets in a fun and playful ecosystem.
What is an Aurigami?
Aurigami’s inspiration comes 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 more than the sum of its parts.
Likewise, the team behind Aurigami also wants to do the same for clients’ crypto assets, allowing 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 over-collateralized. Additionally, Aurigami users can simply deposit assets that support the protocol to generate rates ranging from 8% to 12%.
The Aurigami protocol supports the nine largest assets in the Aurora ecosystem and has already established itself as one of the leading protocols on Aurora with over $900 million in total value locked.
The protocol supports assets such as ETH, Wrapped BTC, and stablecoins such as USDC and USDT.
Aurigami was instrumental in identifying and resolving a critical gas limit issue that plagued the Aurora Network this year. The platform emerged unscathed from the recent Flux oracle issue that led to faulty closeouts, which affected many other protocols.
This was a result of implementing the system early on, as the Aurigami team recognized the risks involved in DeFi and were constantly vigilant to stay ahead of the security curve.
Characteristics of the Aurigami
The native Aurigami token is $PLY which aims to incentivize ecosystem participants and share a vision of alignment among the various stakeholders within the Aurigami ecosystem.
Thus, by holding the token, PLY HODLers (#Papeurhands) will also have the ability to govern the ecosystem.
PLY on Aurora: 0x09c9d464b58d96837f8d8b6f4d9fe4ad408d3a4f
PLY on Ethereum: 0x1ab43204a195a0fd37edec621482afd3792ef90b
A total supply of 10 billion PLY is distributed as follows:
- Liquidity mining – 40%
- Strategic investors – 19.5%
- Team – 19%
- Cash – 12.5%
- Initial Exchange Offer – 5%
- Exchange liquidity – 4%
LLT (Liquid Locked Token)
PULP is the biggest USP of the Aurigami protocol, also known as Liquid Locked Token. PULP is a representation of locked PLY. By holding PULP, users will have the right to exchange it for PLY at a later date.
Meanwhile, locked PLY or PULP, like other liquid tokens, is free to be traded or exchanged for other digital assets, making PULP a “liquid locked token” (LLT).
In the past, some protocols have successfully enabled the liquidity of locked and acquired assets through the use of financial NFTs.
There was a claim that the need to support a multitude of parameters justified the use of NFTs, which are capable of being encoded with complex information that otherwise cannot be obtained with ERC-20 tokens usual.
On the other hand, Aurigami’s PULP could be designed as an ERC-20 token to represent locked PLY, allowing the team to approach liquid-locked tokens in an easy way.
Aurigami pioneered Liquid Locked Tokens (LLT). Distributing a combination of LLT (i.e. PULP) and the underlying protocol tokens (i.e. PLY) in liquidity mining discourages the typical “hard and fast” approach. discharge” adopted by mercenary capital.
As a result, it allows protocols to align their long-term interests with their users.
The PULP and PLY market will be governed by game theory, where users are empowered to use the investment strategies they deem appropriate. Buyers will be able to enter long positions in PLY at a discount via PULP, while PULP owners will be able to sell in exchange for immediate cash.
Additionally, the prolonged release of PLY also helps spread the selling pressure that plagues many incentive programs, opening up speculation to savvy investors.
LLT is a new design that can solve a problem that early liquidity mining programs did not solve. Similar to veTokens, LLT is what protocols can integrate to align long-term interests between users and the protocol.
There are already many cases where over-the-counter agreements are made between protocol treasuries and investors involving 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 that, which should enable the potential for future transactions in the emerging crypto industry.
How to start with Aurigami?
In order to interact with Aurigami, first of all, users deposit their preferred assets supported by the protocol. This not only allows users to earn interest based on market borrowing demand, but users also use the deposited assets as collateral to borrow other assets.
In this, the interest earned on the deposited assets will help offset the accrued interest on borrowings.
- Funds deposited by users are allocated in smart contracts.
- Depositors and lenders will receive yield-bearing tokens, called auTokens, which will be used for on-demand withdrawal of deposited funds from the pools. In addition, auTokens are also tradable and transferable.
- In order to deposit digital assets, users will need to go to the Market page, select the asset, then click on “Deposit” and enter the amount of the asset to be deposited.
- Finally, click “Approve” and wait for the transaction to be confirmed. No minimum or maximum deposit will be imposed.
- Then users will start earning interest on the deposited amount.
- Depositors will receive ongoing income on their deposited assets and win rates will adjust algorithmically for each asset based on their market conditions.
- In this, the auToken is a representation of the user’s asset balance provided to the Aurigami protocol.
Users can withdraw assets as long as those funds are not actively used to borrow and the withdrawal of those assets would not cause their loans to be liquidated.
- To withdraw digital assets, in the “My Account” section, you will need to access the “Deposits” tab. Click “Withdraw” and enter the amount of the asset to be withdrawn, then click “Withdraw” again.
- To borrow assets on Aurigami, a user is required to deposit an accepted asset to be used as collateral.
- The maximum amount that can be borrowed depends on the number of guarantees in the user’s account, indicated as “Borrowing limit” in the “My account” section.
- On the other hand, refunds can be made directly in “Borrow” under “My account”. To do this, under “My Account”, you will need to navigate to the “Borrow” tab.
- Click “Repay” for the amount of the asset to be repaid, making sure your wallet has enough balance to do so. Then click “Repay” again.
- In order to link assets to Aurora from Ethereum. You will need to go to https://rainbowbridge.app/transfer.
- Select transfer from Ethereum and transfer to Aurora, connect your wallet and click “Start” a new transfer. Next, click “Show” all tokens to select the desired tokens and entry amount, then click “Continue”.
Have fun farming with Aurigami
Compared to its competitors, the Aurigami protocol offers a smooth and simple user interface to facilitate deposits and borrowings for users.
Additionally, its farming yield is one of Aurora’s highest deposit rates and lowest borrow rates. Any developer on Aurora can use Aurigami as a building block of their product by accessing its liquidity.