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description: >-
  On this page, you can find a detailed explanation of Aeroscraper's vision and
  how it works.
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# Whitepaper

## Aeroscraper

Governance-free, interest-free, decentralized lending-borrowing protocol.

## Our Vision

“The core objective of the Aeroscraper revolves around bolstering the establishment, expansion, and widespread acceptance of a highly secure, trustless, and decentralized financial framework. By being community-owned, it aims to instill enhanced stability and transparency into DeFi.”

## Intro

Aeroscraper is the first truly decentralized lending protocol built on Injective and Sei Network. Its operations are immutable, non-custodial, and governance-free. It is a finished product with no admin keys.

The protocol was developed to allow owners of Injective (INJ) and Sei (Sei)  a method of extracting value from their holdings, without ever selling. By locking up INJ, and SEI  coins and minting AUSD (a USD-pegged stablecoin), an SEI, INJ holder can take a 0% interest-free loan against their holdings, on a timeless repayment schedule.

## What is Aeroscraper?

Aeroscraper is a decentralized lending protocol that allows you to draw interest-free loans against SEI, and INJ used as collateral.

Users deposit SEI, INJ and mint aUSD (stablecoin). These individual collateralized debt positions are called troves. The minted stablecoins are economically geared towards maintaining a value of 1 AUSD = $1 USD of SEI, INJ value, due to the following properties;

1\. The system is designed to always be over-collateralized. The dollar value of the locked SEI, INJ exceeds the dollar value of the issued stablecoins.

2\. The stablecoins are fully redeemable. Users can always swap AUSD for SEI, INJ

3\. The system controls the generation of AUSD. The operations are done algorithmically, through a variable issuance fee.

After opening a Vault, users mint their stablecoin to a collateral ratio of at least 115%. As an example, a user with $11,500 worth of SEI, INJ can mint up to 10,000 AUSD

The tokens are freely exchangeable – anyone can send or receive AUSD tokens. AUSD tokens are burned upon repayment of a Trove’s debt or via a direct redemption process.

The Aeroscraper system regularly updates the (SEI, INJ): USD price via a decentralized data feed. When a Vault falls below a minimum collateralization ratio (MCR) of 115%, it is considered under-collateralized and is vulnerable to liquidation. This is to ensure the protocol remains solvent at all times, and 1 AUSD can always be redeemed for $1 USD worth of SEI, INJ

## What's the motivation behind Aeroscraper?

The protocol was developed to allow owners of SEI, and INJ a method of extracting value from their holdings, without ever selling their tokens. By locking up SEI, INJ, and minting AUSD, SEI, and INJ holders can take a 0% interest-free loan against their holdings, on a timeless repayment schedule.

Stablecoins are an essential building block on any blockchain. However, the vast majority of this value is made up of centralized stablecoins. Decentralized stablecoins make up only a small portion of the total stablecoin supply.

Aeroscraper addresses this by creating a more capital-efficient and user-friendly way to borrow a decentralized stablecoin. Furthermore, Aeroscraper is completely immutable, governance-free, and non-custodial.

**What are the key benefits of Aeroscraper?**

0% interest rate – As a borrower, there’s no need to worry about constantly accruing debt.

115% MCR – a low minimum collateralization ratio means more efficient usage of your deposited SEI, INJ.

Governance free – all operations are algorithmic and fully automated, and protocol parameters are set at the time of deployment.

Directly redeemable – the protocol allows you to exchange 1 AUSD stablecoin for $1 USD worth of SEI, INJ at any time.

Fully decentralized – the contracts have no admin keys and can be accessible via other front ends, making it censorship-resistant. Borrow AUSD against SEI, and INJ by opening a ‘​Trove’.

## Does anyone ''own'' or operate the protocol?

No. The contract is immutable and therefore has no owner or operator.

### Can Aeroscraper be upgraded or changed?

No. The protocol has no admin key, and nobody can alter the rules of the system in any way. The smart contract code is completely immutable once deployed.

### Has the protocol been third-party verified, certified, and/or audited?

The protocol is currently in the audit process with Beosin and the full report will be made publicly available.

