Auro Finance Documents
  • Auro Finance - Testnet Event
  • Introduction
    • Overview
    • Collateral Debt Position - USDA
      • Collateral
      • USDA: A Decentralized, Collateral-Backed Stablecoin
  • FAQ
  • Governance
    • AURO
  • gAURO
    • gAURO Summary
    • gAURO Locking Mechanics
    • Auro Finance Governance
    • gAURO Emissions & Community Incentives
    • Auto-Compounding
      • Protocol Fees & Community Incentives
    • Revenue & Operational Costs
  • User Guide
    • Collateral Debt Position
      • Provide Collateral and Borrow USDA
      • Repay USDA
      • Withdraw collateral
  • AURO / gAURO
    • Lock AURO
    • Extend AURO lock
    • Merge / Split
    • Claim Rewards
  • For Developer
    • Overview - for Developer
  • Others
    • Legal Disclaimer
    • Brand Asset
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FAQ

What is Auro Finance?

Auro Finance is an advanced Collateralized Debt Position (CDP) protocol designed to help users unlock liquidity using their crypto assets. Operating on the Aptos blockchain, Auro Finance aims to establish USDA as a leading stablecoin through its innovative CDP model.

What is USDA?

USDA is Auro Finance’s decentralized, over-collateralized stablecoin, pegged to the US Dollar and backed by crypto assets such as stAPT, amAPT, and APT.

What is Collateral?

Collateral is an asset that borrowers provide as security when taking out a loan. If the borrower fails to meet required conditions, the collateral may be liquidated to cover the debt.

What is Loan-to- Value Ratio?

The Loan-to- Value ratio represents the relationship between the value of collateral and the borrowed amount in USDA.

  • This ratio fluctuates with market prices, meaning borrowers may need to adjust their collateral or repay debt to maintain a healthy ratio.

  • Example: If APT is priced at $10 and you deposit 1 APT, borrowing 6 USDA results in a 60% LTV (6:10). Borrowing 7 USDA brings it to 70% (7:10).

How Can Users Earn with USDA?

Users can earn rewards by: ✅ Deposit on Lending and Borrowing Protocols

✅ Providing liquidity on PancakeSwap, Wombat Exchange, ThenaFi, Curve, and Uniswap to earn trading & LP fees

While USDA is designed for price stability, market conditions may occasionally cause slight fluctuations from its USD peg.

Will My Position Be Liquidated on Auro Finance?

Yes, liquidations are part of the risk in lending protocols like Auro Finance.

  • If the value of your collateral drops below the LTV, liquidation occurs.

  • Example: If your LTV is 70%, and your collateral value drops below this threshold, your position will be liquidated.

  • You keep the borrowed USDA, but your collateral is sold to repay liquidators.

Are Users at Risk of Losing Their Funds?

Auro Finance is a non-custodial protocol, meaning all assets are held in smart contracts, not controlled by any entity. While Auro Finance undergoes rigorous audits and security measures, DeFi protocols inherently carry risk. Users should evaluate potential risks before participating.

Key Risks to Consider

  1. Regulatory Uncertainty – Laws surrounding DeFi and digital assets vary by jurisdiction and may evolve unpredictably.

  2. Development Risks – The protocol’s future depends on adoption, technical progress, and market conditions.

  3. Security Threats – While audited, hacking attempts or unforeseen vulnerabilities can pose risks.

  4. Project Viability – Like any early-stage blockchain project, changes in crypto markets, utility, or partnerships can impact sustainability.

Auro Finance remains committed to transparency and security, continuously improving its platform while ensuring a decentralized, capital-efficient stablecoin ecosystem on Aptos.

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Last updated 5 days ago