🤑auUSDC/auETH/auWS
auTokens are yield-bearing tokens introduced by Aurum’s lending protocol. They are designed to represent a user’s supplied assets in the protocol while automatically accruing interest or yield. auTokens are conceptually similar to aTokens from Aave but bring unique features tailored to the Aurum ecosystem.
How Do auTokens Work?
Minting auTokens:
When a user supplies assets (e.g., USDC, ETH) to Aurum’s lending protocol, they receive an equivalent amount of auTokens (e.g., auUSDC, auETH) in a 1:1 ratio.
Accruing Yield:
auTokens automatically accrue interest based on the yield generated by the underlying asset in the protocol.
The yield is reflected in the balance of auTokens in the user’s wallet, which grows over time.
Redeeming auTokens:
Users can redeem their auTokens at any time to withdraw the original supplied assets along with the accrued interest.
Key Features of auTokens
Yield-Bearing:
The balance of auTokens grows continuously as they generate yield from the supplied assets.
Non-Volatile Value:
The value of each auToken remains pegged to the underlying asset (e.g., 1 auUSDC = 1 USDC).
Liquidity and Versatility:
auTokens can be used in various DeFi strategies, including liquidity provision on incentivized DEXes, allowing users to earn additional rewards.
Example Usage
A user supplies 100 USDC to the Aurum protocol.
They receive 100 auUSDC in their wallet.
Over time, as the protocol generates yield, their wallet balance increases to 105 auUSDC, which can be redeemed for 105 USDC.
Benefits of auTokens
Passive Income:
Users earn yield without needing to actively manage their assets.
Composability:
auTokens can be integrated into other DeFi protocols and strategies for additional earnings.
Transparency:
The yield accrual is automatic and transparent, visible in real-time through the user’s wallet.
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