AETERNITY DEFI TRACK
- A collateral backed stable coin that helps people take loan by putting Aeternity token as collateral.
We have seen an increase in demand for the stable coin as the market is currently experiencing a downturn people are looking for stable alternatives. while centralized stable coin are present but they are still a single point of failure with the ongoing CeFI fiasco it is getting harder to trust centralize entities
How does this works ?
It works in a very simple way,
A user submits AE has collateral and recieves 70% of the token value in a stable coin called AUSD. now the stable coin is backed by debt and is over collaterized.
Now the interest is calculated on an hourly basis and using oracles and the collateral ratio is calculated, but the contract itself cannot liquidate user assets
If a users collateral ratio falls below a certain point the liquidators can submit liquidation request and earn some amount of profit
On being called by liquidators the contract verifies the collateral ratio and if it is below a certain threshold it liquidates it on the superhero DEX
Architecture
- Smart Contract : In order to be truly decentralize all the logic from liquidation to minting and even reserves are on the smart contract. which makes it verifiable for everyone to check the reservese vs the marketcap of AUSD.
- Oracles : Using the price feed oracle to check collateral ratio and issue new tokens, also the oracles is deployed on testnet and is accessible publicly but currently only servers AE<->USD pair
- SuperHero Dex : In order to liquidate bad loans our contract directly uses Superhero dex to swap the collateral and buy back AUSD keeping the price of the AUSD intact
Future :
- Add reward for liquidators
- Allowing users to stake in there AUSD to earn rewards from the interest given by borrowers
- Introducing more liquidation methods, while small amout of loans can be directly be liquidated on dex, for big loans a auction based method is needed
- Allowing AUSD to become cross chain and also using assets other than AE as collateral