Each asset supported by the Aquarius Loan is integrated through a aToken contract, which is an EIP-20 compliant representation of balances supplied to the protocol. By minting aTokens, users (1) earn interest through the aToken's exchange rate, which increases in value relative to the underlying asset, and (2) gain the ability to use aTokens as collateral.
aTokens are the primary means of interacting with the Aquarius Loan; when a user mints, redeems, borrows, repays a borrow, liquidates a borrow, or transfers aTokens, she will do so using the aToken contract.
There are currently two types of aTokens: AErc20 and CEther. Though both types expose the EIP-20 interface, AErc20 wraps an underlying ERC-20 asset, while CEther simply wraps Ether itself. As such, the core functions which involve transferring an asset into the protocol have slightly different interfaces depending on the type, each of which is shown below.
How do aTokens earn interest?
Each market has its own Supply interest rate (APR). Interest isn't distributed; instead, simply by holding aTokens, you'll earn interest.
aTokens accumulates interest through their exchange rate — over time, each aToken becomes convertible into an increasing amount of it's underlying asset, even while the number of aTokens in your wallet stays the same.
Can you walk me through an example?
Let’s say you supply 1,000 USDC to the Aquarius protocol, when the exchange rate is 0.020070; you would receive 49,825.61 aUSDC (1,000/0.020070).
A few months later, you decide it’s time to withdraw your USDC from the protocol; the exchange rate is now 0.021591:
Your 49,825.61 aUSDC is now equal to 1,075.78 USDC (49,825.61 * 0.021591)
You could withdraw 1,075.78 USDC, which would redeem all 49,825.61 aUSDC
Or, you could withdraw a portion, such as your original 1,000 USDC, which would redeem 46,315.59 aUSDC (keeping 3,510.01 aUSDC in your wallet)
How do I view my aTokens?
Each aToken is visible on Etherscan, and you should be able to view them in the list of tokens associated with your address
aToken balances have been integrated into Coinbase Wallet and MetaMask; other wallets may add aToken support
Can I transfer aTokens?
Yes, but exercise caution! By transferring aTokens, you’re transferring your balance of the underlying asset inside the Aquarius protocol. If you send a aToken to your friend, your balance (viewable in the Aquarius Interface) will decline, and your friend will see their balance increase.
A aToken transfer will fail if the account has entered that aToken market and the transfer would have put the account into a state of negative liquidity.