Aquarius is a fork of the Liquity protocol in the Fantom network. Aquarius has the features and benefits consistent with the Liquity protocol. In addition, based on the concept of Liquity, we have designed a new tokenomics to adapt to the fantom network.
The Liquity Protocol is complex and almost perfect. The following introduction is just a simple tutorial for using Aquarius.
Borrowing Fee — The Borrowing Fee is a one-off fee charged as a percentage of the borrowed amount (in aUSD) and is part of a Trove’s debt. The fee varies between 0.5% and 5% depending on aUSD redemption volume.
TVL— The Total Value Locked (TVL) is the total value locked as collateral in the system, given in FTM and USD.
Troves — The total number of active Troves in the system.
aUSD supply — The total aUSD minted by the Aquarius Protocol.
aUSD in Stability Pool — The total aUSD currently held in the Stability Pool, expressed as an amount and a fraction of the aUSD supply.
Staked AQU — The total amount of AQU that is staked for earning fee revenue.
Total Collateral Ratio — The ratio of the dollar value of the entire system collateral at the current FTM:USD price, to the entire system debt.
Recovery Mode — Recovery Mode is activated when the Total Collateral Ratio (TCR) falls below 150%. When active, your Trove can be liquidated if its collateral ratio is below the TCR. The maximum collateral you can lose from liquidation is capped at 110% of your Trove’s debt. Operations are also restricted which would negatively impact the TCR.
aUSD is the USD-pegged stablecoin used to pay out loans on the Aquarius protocol. At any time it can be redeemed against the underlying collateral at face value.
aUSD will be minted when users deposit collateral (FTM) and open troves. The mechanism for its price stability is described in Liquity’s doc.
AQU is the secondary token issued by the Aquarius. It captures the fee revenue that is generated by the system and incentivizes early adopters and Frontend Operators.
The Trove section is where you will maintain your loan. Here you will be able to add/remove FTM as collateral as well as manage your debt.
Note that each Fantom address is only able to have one Trove.
Collateral — The amount in FTM staked as security for repayment of your loan
Debt — The amount of aUSD borrowed.
Liquidation Reserve — An amount set aside to cover the liquidator’s gas costs if your Trove needs to be liquidated. The amount increases your debt and is refunded if you close your Trove by fully paying off its net debt.
Borrowing Fee — This amount is deducted from the borrowed amount as a one-time fee. There are no recurring fees for borrowing, which is thus interest-free.
Collateral ratio — The ratio between the dollar value of the collateral and the debt (in aUSD) you are depositing. While the Minimum Collateral Ratio is 110% during normal operation, it is recommended to keep the Collateral Ratio always above 150% to avoid liquidation under Recovery Mode. A Collateral Ratio above 200% or 250% is recommended for additional safety.
Opening a Trove
Open a Trove to mint aUSD debt against your FTM.
1) Enter the amount of FTM collateral you wish to use. (The Collateral Ratio needs to be above 110% or above 150% if in Recovery Mode)
2) Enter a debt value greater than 50.00 aUSD
3) Confirm the amount of FTM deposit and aUSD displayed at the bottom info section
4) Click “Confirm”
After you have successfully confirmed, the Trove view will add the ability to adjust or close the Trove.
The Stability Pool acts as a cushion to make the platform more stable. If you provide aUSD to this pool you will be able to earn some extra rewards.
Deposit your aUSD into the Stability Pool to earn rewards in AQU token.
- Click the “Deposit” button
2) Enter the amount of aUSD you wish to enter
3) Click the “Confirm” button
After some time, you will gain FTM and AQU. When you have a reward to claim, the button will be enabled. If you currently have a Trove open, you will also have the option to “Claim AQU and move FTM to Trove.”
Stake the AQU you earn to receive protocol income and transfer fee in aUSD, FTM and AQU.
- Click the “Start staking” button
2) Enter the amount of AQU you’d like to stake.
3) Click the “Confirm” button
Claim your Staking reward by clicking the “Claim gains” button and approving the transaction.
You can farm AQU by staking your SushiSwap FTM/aUSD LP tokens.
You can farm AQU by staking your SushiSwap FTM/AQU LP tokens.
1) Click Stake
2) Approve the amount of Sushi LP and Confirm
Risky Toves are troves that have a low collateral ratio and may be liquidated if collaterals prices drop sharply.
A redemption is the process of exchanging aUSD for FTM at face value, as if 1 aUSD is exactly worth $1. That is, for x aUSD you get x Dollars worth of FTM in return.
Users can redeem their aUSD for FTM at any time without limitations. However, a redemption fee might be charged on the redeemed amount.
aUSD redemption is disabled for the first 14 days after launch.
We strongly recommend that every user can study Liquity Protocol carefully before use Aquarius. You can directly read the official Liquity documentation and find more details, or join our community to discuss it.
Aquarius Finance Links