For the complete documentation index, see llms.txt. This page is also available as Markdown.

Liquidity, Collateral and Borrowing

Liquidity, Collateral and Borrowing

AQUA operates as a two-sided lending market where users can supply assets to earn yield or deposit collateral to access borrowing capacity.


Supplying Liquidity

Users can supply supported assets such as OXAU, USDC, and USDT to AQUA lending pools. Supplied assets earn yield generated from borrowing activity within the protocol. Interest rates are variable and are determined by the utilization rate of each asset pool, adjusting dynamically as borrowing demand changes relative to available supply.


Collateral and Borrowing

Users may deposit OXAU as collateral to borrow supported assets within AQUA.

The following parameters apply:

Parameter
OXAU
USDC
USDT

Max LTV

65%

75%

75%

Liquidation Threshold

75%

88%

88%

Liquidation Bonus

5%

4.5%

4.5%

Borrow Assets

OXAU, USDC, USDT

OXAU, USDC, USDT

OXAU, USDC, USDT

Reserve Factor

10%

10%

10%


Liquidation

If the value of a borrower's collateral falls and the position exceeds the liquidation threshold of 85%, the position becomes eligible for liquidation. Liquidation may occur automatically and without prior notice. Users are solely responsible for monitoring their collateral ratio and managing their positions accordingly.

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