Understanding Redemption Mechanism

What are aUSD redemptions?

  • Someone comes along to redeem their aUSD
  • All Troves (i.e. positions in Aquarius) are sorted from lowest collateral ratio to the highest collateral ratio (most risky to least risky)
  • The redeemed aUSD is used to pay off the debt of the riskiest Trove(s) in return for their collateral
  • The Trove owner’s remaining collateral is left for them to claim (borrowers who are redeemed against do not incur a net loss)

Why allow aUSD redemptions?

How can I be affected by aUSD redemptions?



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aquarius.fi is a decentralized borrowing protocol with interest-free loans, high capital efficiency. we expect Aquarius to be the next MakerDao in the Fantom.