AJNA
The Ajna protocol is a noncustodial, peer-to-pool, permissionless lending and borrowing system that requires no governance or external price feeds to function. The current version is built for Ethereum Virtual Machine(EVM) compatible networks.
Categories:
DeFi
web3
Updated:
2024-01-12
Tags:
Borrowing & Lending
Hedging
Leverage
Perpetual
Yield Bearing
Ticker:
AJNA
Token Strength.
Token Utility:
AJNA tokens are the Ajna Protocol's native token. They are used for voting in the grants program and are bought and burned by pools with excess reserves.
Demand Driver:
The protocol itself buys AJNA with excess revenue through reserve auctions.
Value Creation:
Permissionless pool creation = Unlimited Markets, long or short. No oracles = less risk and more scalability for pool options No governance = less risk and more dependability long term As the system gains adoption, revenue will be generated for the protocol which sometimes will result in AJNA buy and burn.
Value Capture:
AJNA tokens are bought and burned from excess revenue accumulated in each pool's reserves. Read more here: https://faqs.ajna.finance/faqs/reserve-auctions
Business Model:
Protocol facilitates secured borrowing and lending. Interest and penalties constitute the revenue. Most of the borrower interest is paid to the lenders. The protocol pools each earn NIM and other fees (read more here: https://faqs.ajna.finance/faqs/reserve-auctions#what-are-reserves) The protocol itself has near 0 overhead, apart from the Ajna Foundation that takes care of legal issues and trademark management. They have been pre-funded and if they ever need funds in the future they must apply through the protocol's built-in grant program. The grant program targets projects that have a material impact on the protocol's success. 30% of the AJNA token supply has been allocated to this program, read more here: https://faqs.ajna.finance/faqs/grants
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Protocol Analysis.
| Problems & Solutions | What problems does Ajna solve? Users are at the mercy of governance decisions as current protocols manually adjust interest rates, collateralization requirements, and other parameters. Parameters can be manipulated by different parties with conflicting agendas. Interest rates may be suboptimal because they are not decided automatically by market forces. Teams waste valuable resources to determine parameter changes. Governance can be attacked, harming users for the benefit of a malicious party. Competing protocols expose themselves and their users to the risk of price feed manipulation. Competing protocols like Maker, Aave, and Compound must approve collaterals that can be used, limiting options for their users. Approving new assets is slow due to bureaucratic requirements. Less-popular, but legitimately valuable assets, are unlikely to ever be approved. Users are left without options for less-popular NFTs due to current protocols which have NFTs as collateral using whitelists or verified collections. Lack of options for shorting markets. How does Ajna solve the above problems? Ajna has no protocol-level governance. Once deployed, the protocol is immutable and parameter adjustments only occur automatically as a result of market forces. Pool utilization determines interest rates. Lenders determine collateralization ratios. Ajna does not use any price feeds. Lenders decide the prices at which they value collateral. Liquidation bonds ensure appropriate liquidations, removing the need for price feeds. Ajna is permissionless allowing anyone to start a lending pool with any collateral and quote-token. Less popular assets, NFTs, or NFT collections can be used as collateral without the need for whitelists. Enables permissionless creation of shorting markets for any ERC-20. |
|---|---|
| Predecessors | None |
Investment Take
... coming soon
Tokenomics Timeline.
2024-01-08
Launch of Protocol
Silent launch, no frontends yet. Launched on Ethereum, Base, Arbitrum One, Optimism, and Polygon POS Grant Cycle one also started this day
2024-01-11
Front end launches
ajnafi.com and summer.fi teams released their frontends to the public.
2024-01-17
Token Distribution to team and investors
Initial token distribution. This is occurred a few weeks prior to the launch of the grants module and the first grant cycle.
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Ecosystem Users.
| Name | Role | |
|---|---|---|
| Ajna Tokenholder | Delegate their tokens or self-delegate and vote on grant funding decisions. | |
| Borrower | Borrowers deposit collateral tokens into pools and borrow quote tokens. | |
| Delegate | Votes on grant proposals. The group of delegates get paid 10% of each cycle's total distribution. | |
| Integrator | 3rd party that decides to integrate Ajna into their own application, product, or platform. | |
| Lender | Lenders choose what valuation they are willing to lend against by depositing tokens into specific price buckets. | |
| Liquidation Auction Bidder | Bids for and purchases collateral on sale during liquidation auctions. | |
| Liquidator (Kicker) | Triggers liquidation of bad loans by putting up 1-30% of the positions debt in a liquidation bond that pays out depending on the outcome of the collateral sale. | |
| Reserve Auction Bidder | Bids for and purchases AJNA on sale during reserve auctions. |