How Aqua Protocol Works, Here's the Explanation

Bittime - Aqua Protocol has attracted the attention of many people with its incredible potential. For beginners who want to understand how Aqua Protocol works, this article will be a comprehensive educational guide.

What is Aqua Protocol?

Aqua Protocol is a new breakthrough on the Ton blockchain, opening up lending opportunities through the issuance of AquaUSD, a decentralized stablecoin backed by overcollateralization.

Priced 1:1 against the US Dollar, AquaUSD becomes the first stablecoin on the Ton blockchain to provide stability and guaranteed exchange rates.

Also Read How To Buy Crypto: How to Buy BTC

How Does Aqua Protocol Work?

Aqua Protocol presents an innovative solution for TONCOIN and Liquid Staking Token (LST) users to access DeFi easily and securely. The following is an explanation of the steps:

1. Deposit TONCOIN or LST

• Start by depositing your TONCOIN or LST (such as stTon, tsTon, hTon, wlTon) into Aqua Protocol. This deposit functions as loan collateral.

2. Get AquaUSD on Credit

• Based on your collateral, you can borrow AquaUSD, a stablecoin tied to the value of USD. The amount of AquaUSD received is equivalent to 50% of the collateral value. The minimum collateral ratio for printing is set at 200%.

Also Read How To Buy Crypto: How to Buy BTC

Guarantee Percentage

• This 50% guarantee is necessary to maintain the stability of the protocol, considering the volatility of the cryptocurrency used as collateral.

3. Use AquaUSD in DeFi

• Various Use Cases: AquaUSD can be used for various purposes such as exchanging other coins or stablecoins, trading, hedging risk, providing liquidity, purchasing NFTs or other tokens, and more.
• Increasing Leverage: You also have the option to redeposit AquaUSD to Aqua Protocol. This strategy can increase your leverage, potentially increasing profits from liquid staking and profiting from rising Toncoin prices.

4. Paying Back the Loan to Take Your Collateral

• Getting Back Collateral: If you want to get your collateral back, simply pay back the borrowed AquaUSD. Once payment is cleared, your collateral will be released and available for withdrawal.

Conclusion

Aqua Protocol offers an easy and flexible way to leverage your TONCOIN or LST, allowing you to actively participate in the DeFi space while maintaining the opportunity to profit from the assets you stake.

How to Buy Crypto on Bittime

You can buy and sell crypto assets in an easy and safe way via over. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets at over, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. Study Complete Guide How to Buy Crypto on Bittime. 

Monitor graphic movement Bitcoin (BTC) price, Ethereum (ETH), Solana (SUN) and other cryptos to find out today's crypto market trends in real-time on Bittime.