Introduction

Introducing Aqua Protocol: The First LST-Backed lending Platform and Our Fundamental Goals.

Aqua Protocol emerges as a pioneering decentralized platform, not only infusing stability into the dynamic cryptocurrency market but also functioning as a lending protocol. It primarily focuses on Liquid Staking Tokens (LSTs), with a special emphasis on TONCOINs and a variety of supported TONCOINs proof-of-stake LSTs as its key elements.

AquaUSD: A New Era of Stability in Ton Blockchain's DeFi Ecosystem

Aqua Protocol is paving the way in the Ton blockchain by enabling loans through the issuance of AquaUSD, an over-collateralized decentralized stablecoin. Pegged 1:1 to the US Dollar, AquaUSD is the first stablecoin of its kind on the Ton blockchain.

The protocol allows users to create AquaUSD by using Toncoins and other eligible Liquid Staking Tokens (LSTs) as collateral. This approach not only ensures liquidity but also maintains security within the Aqua Protocol's ecosystem. AquaUSD's adherence to a 1:1 USD peg enhances its usability and accessibility, making it an efficient instrument for diverse DeFi transactions.

In the fluctuating world of cryptocurrencies, AquaUSD introduces a stable and secure option, especially within the Ton blockchain environment. Its debut marks a significant stride in expanding the functionality and reach of stablecoins in the dynamic DeFi sector.

A Groundbreaking Strategy for Yield Generation in DeFi Markets through Aqua Protocol

Aqua Protocol stands out in the DeFi space with an innovative approach that enhances capital efficiency. Unlike platforms that use non-income-generating assets as collateral, Aqua Protocol allows users to deposit TONcoin or Liquid Staking Tokens (LSTs) and mint AquaUSD against these holdings. The key difference is that the collateral itself is a yield-generating asset, actively earning from staking.

As users stake TONcoin or LSTs within the protocol, they continue earning returns from staking while utilizing the minted AquaUSD for financial activities. This dual benefit of liquidity access and ongoing yield from the staked collateral makes Aqua Protocol more capital-efficient than static-collateral counterparts.

Moreover, Aqua Protocol allows anyone to mint overcollateralized stablecoins AquaUSD, setting it apart from centralized alternatives. The deposited collateral continues generating income even while being used for minting.

In the future, Aqua Protocol will also support low-risk LP tokens from Storm Trade, Dedust, and StonFi, along with real-world assets (RWA). Additionally, we address the current lending market’s issue of limiting loans to 4 million USDT by offering a solution with no such restrictions.

Aqua Protocol is not just another DeFi platform; it's a crucial infrastructure project for the TON DeFi ecosystem. By enabling users to deposit yield-generating assets like TONcoin and Liquid Staking Tokens (LSTs) to mint AquaUSD, it lays the foundation for other products and one-click strategies to be built on top of it. This capability positions Aqua Protocol as a cornerstone for further innovation and growth within the TON ecosystem.

Enhancing Collateral Asset Range in Aqua Protocol next versions

The upcoming Aqua Protocol Versions aim to broaden its support for a diverse array of Liquid Staking Tokens (LSTs) as collateral. This expansion will offer enhanced flexibility and options for AquaUSD users and borrowers. Additionally, it will grant increased independence to the Aqua Protocol DAO, allowing for more dynamic governance. Following any DAO proposal and its resultant voting, the Aqua Contract Admin will have the capability to add or remove supported assets, aligning with the governance outcomes. Such versatility ensures that Aqua Protocol remains a leader in the rapidly changing DeFi sector, while maintaining the utmost priority on the protocol's security and stability.