AI Summary
Show More
Quickly grasp the article's content and gauge market sentiment in just 30 seconds!
The world of lending and borrowing has come a long way when it comes to overall access to capital. While it was previously only available to traditional financial institutions, anyone with digital assets today can lend and borrow as long as they meet the necessary margin requirements. This lets investors with spare capital lend out their assets so they can earn interest on the side.
Conversely, those who plan to make leveraged investments have easy access to extra assets while paying a fraction of what they normally would to traditional lending institutes. Thanks to money market protocols like Aave and Anchor Protocol gaining popularity among savvy DeFi investors, it's no surprise that the Ethereum scaling solution, Aurora, has its own app for users to lend and borrow with ease.
Aurigami is Aurora's first and only money market protocol. It lets users effortlessly earn interest with their digital assets. Keen on learning about what Aurigami and its native PLY token bring to the DeFi space? Read on to learn if Aurigami is a good investment for long-term investors — and how you can take advantage of Aurigami's potential growth with its PLY token.
Aurigami is a decentralized, noncustodial liquidity protocol on Aurora that takes advantage of NEAR Protocol blockchain’s high throughput and scalability. The protocol lets users effortlessly lend, borrow and earn interest with their digital assets. Depositors provide liquidity to the protocol to earn a passive income, while others are able to borrow in an over-collateralized fashion.With Aurigami, users will have access to lending and borrowing their crypto at favorable rates. To get started, users can simply deposit assets supported by the protocol to earn yields ranging from 8%–12%. Currently, assets like ETH, Wrapped BTC, and stablecoins such as USDC and USDT are supported, with more in the pipeline as Aurigami matures into a trusted Aurora protocol.
Depositing assets into Aurigami entitles users to interest earning based on the market borrowing demand. For those willing to take on more risk, deposited assets can be used as collateral to borrow other assets. Interest earned from deposited assets will help offset the accumulated interest from borrowing, creating a profitable loop that the Aurigami team affectionately terms folding. Users repeat the cycle of borrowing and depositing, maximizing the effect of looping to obtain more rewards and mine more PLY tokens. This is similar to the way in which an artist creatively folds a piece of paper to create beautiful Origami.