Aurigami is a decentralized, non-custodial liquidity protocol. It allows users to lend, borrow, and earn interest using their digital assets. Liquidity providers add funds to the protocol to receive passive returns, while borrowers can take loans in an over-collateralized structure.

The team built a highly gas efficient lending market on Aurora by optimizing the contracts and implementing a custom liquidation engine. Aurigami supports key money market functions, including deposits and collateralized lending, for 8 major assets within the Aurora ecosystem.

Using Aurigami is straightforward: users deposit assets that are supported by the protocol. When users deposit, they become eligible to earn interest tied to market borrowing demand. Deposits can also be used as collateral to borrow other supported assets, and the interest generated from deposited funds can help offset the interest that accrues on loans.

Depositors and lenders receive tokenized, yield-bearing tokens (auTokens), which enable withdrawals of deposited assets from the pools when requested. auTokens are also designed to be tradable and transferable.

No protocol is completely free of risk. Potential risks may include Smart Contract risks and Liquidation risks. To reduce these risks, the team has pursued audits and maintains the protocol as public and open source.