🗂️Aurum V3

Features

The Aurum Protocol is a decentralised non-custodial liquidity protocol where users can participate as suppliers, borrowers, or liquidators. Suppliers provide liquidity to a market and can earn interest on the crypto assets provided, while borrowers are able to borrow in an overcollateralized fashion. Borrowers can also engage in one-block borrow transactions (”flash loans”), which do not require overcollateralization.

V3 of the Aurum Protocol augments the core concepts of the Aurum Protocol (aTokens, instant liquidity, credit delegation, etc.) with new features in the following areas.

Capital Efficiency

V3 allows users to optimise their assets supplied to the Aurum Protocol in terms of yield generation and borrowing power.

Efficiency Mode (E-Mode)

The High Efficiency Mode, or eMode, allows borrowers to extract the highest borrowing power out of their collateral when supplied and borrowed assets are correlated in price, particularly when both are derivatives of the same underlying asset (e.g., stablecoins pegged to USD).

This can enable a wave of new use cases such as high leverage forex trading, highly efficient yield farming (for example, deposit ETH staking derivatives to borrow ETH), and diversified risk management.

Isolation Mode

New assets can be listed as isolated in Aurum Protocol V3. Borrowers supplying an isolated asset as collateral cannot supply other assets as collateral (though they can still supply to capture yield). Borrowers using an isolated collateral can only borrow stablecoins that have been configured by Aurum governance to be borrowable in isolation mode, up to a specified debt ceiling.