Core Features
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Interest-Free Loans: Unlike traditional lending protocols that charge variable interest rates, Aeroscraper offers loans at a 0% interest rate. This feature is significant in the DeFi space, as it allows users to borrow without the burden of accruing interest over time.
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Over-Collateralization: The protocol requires a collateralization ratio of only 115%. This relatively low threshold makes it more accessible and user-friendly compared to other platforms requiring higher collateral ratios.
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Censorship Resistance: Aeroscraper is designed to be independent of any controlling entity, ensuring that it remains free from censorship and external manipulation.
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Automated Operations: All operations within Aeroscraper are algorithmic and fully automated, eliminating the need for manual management. This automation enhances the efficiency and reliability of the protocol.
Financial Inclusion and Stability
The primary vision of Aeroscraper is to bolster the growth and acceptance of a secure, trustless, and decentralized financial framework. By being community-owned, Aeroscraper seeks to instill enhanced stability and transparency in the DeFi sector. It’s the first protocol of its kind built on networks like Sei, Archway, Neutron, and Shardeum, characterized by its immutable, non-custodial, and governance-free nature.
The Protocol Mechanics
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Minting and Loan Mechanism: Users can deposit cryptocurrencies like SEI, ARCH, NTRN, ETH, and ATOM, and in return, mint aUSD, a stablecoin pegged to the US dollar. These individual collateralized positions are known as ‘troves.’
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Stablecoin Properties: The system ensures that the total value of the collateral always exceeds the value of the minted stablecoins, maintaining over-collateralization. Additionally, aUSD is fully redeemable, meaning users can exchange it for the underlying collateral at any time.
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Decentralized Price Feeds: Aeroscraper regularly updates its collateral to USD price ratios through decentralized data feeds, ensuring the solvency and reliability of the protocol.
Security and Transparency
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Immutability: The Aeroscraper protocol is immutable, meaning that once deployed, its smart contract code cannot be altered. This feature ensures long-term reliability and security for its users.
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Audit and Verification: The protocol is slated to undergo a third-party audit, with the full report to be made publicly available, ensuring transparency and trust in its operations.
Use Cases
The main use cases of Aeroscraper include:
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Borrowing aUSD: Users can open a ‘Trove’ to borrow aUSD against their cryptocurrency holdings.
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Earning from Liquidations: By depositing aUSD in the Stability Pool, users can earn rewards in the form of liquidation gains.
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Direct Redemption: Users have the flexibility to redeem 1 aUSD for $1 USD worth of their deposited cryptocurrencies.
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Arbitrage Opportunities: The protocol presents potential gains through arbitrage if the aUSD peg falls below $1 USD.
