# Aurigami

## Introduction

Aurigami is a decentralised, non-custodial liquidity protocol. The protocol enables users to effortlessly lend, borrow, and earn interest with their digital assets. Depositors provide liquidity to the protocol to earn a passive income, while borrowers are able to borrow in an over-collateralised fashion.

## Interaction with Aurigami

To interact with Aurigami, users simply deposit their preferred assets supported by the protocol. Depositing assets into Aurigami entitles users to interest earning based on the market borrowing demand. Additionally, deposited assets can be used as collaterals to borrow other assets. Interest earned from deposited assets will help offset the accumulated interest from borrowing.

## Storage of funds

User deposited funds are allocated in Smart Contracts.

Depositors/Lenders will be issued tokenized yield-bearing tokens (auTokens) which will be used for on-demand withdrawal of deposited funds from the pools. AuTokens are tradable and transferrable.

## Risks

No protocol can be considered entirely risk free. The risks related to the protocol may potentially include Smart Contract risks and Liquidation risks. The team has taken necessary steps to minimise these risks by undergoing audits and keeping the protocol public and open sourced.

For more information, please visit [Risk & Audits](https://docs.aurigami.finance/public/protocol/risks-and-audits).


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