Lending & Borrowing
Supplying Assets
Like Aave, Acumen uses non-custodial liquidity pools for each asset class rather than a p2p structure, where a depositor’s assets are being lent out to another user. These liquidity pools allow users the ability to seamlessly move in and out of the pools as they desire.
Assets supplied to each pool are represented by an Acumen Collateral Token (acToken), which entitles the owner to an increasing quantity of the underlying asset. acTokens become convertible into a growing sum of the underlying asset as the liquidity pools accrue interest, a feature of borrowing demand.
Borrowing Assets
Users can use acTokens as collateral to borrow assets from Acumen, which can be used anywhere in the Solana Ecosystem. To borrow from the protocol, unlike peer-to-peer protocols, users only must designate which asset they want to borrow; there are no maturity dates, funding periods, etc. Everything is done in a fast, decentralized manner.
The assets used as collateral represented as acTokens are used as collateral to borrow from the liquidity pools.
The Borrowing Capacity is defined as:
The borrowing capacity ensures that users cannot increase the total value of borrowed assets in their account, guarding the protocol from default risk. Once the borrowing capacity is reached, a user can no longer take actions to increase the value of assets in his account: borrow, redeem acToken collateral, or transfer acToken Collateral.
Copy link