Unlock higher capital efficiency with Aloe's permissionless leverage.
We're building this product as fast as we can. Enter your email below to get notified when it's ready. In the mean time, feel free to try out Aloe Blend, our automated liquidity management solution.
Aloe gives you a margin account that can interact with Uniswap V3. You get to manage positions and keep profits, but the protocol retains custody. This drastically reduces collateralization requirements. With up to 20x leverage, everyone can operate and hedge more efficiently.
We made this graph while designing the protocol. It illustrates the behavior of a margin account with a single Uniswap position. See for yourself how position bounds & liquidation thresholds impact collateral requirements and available leverage. If you zoom out enough, you can also see the payoff function of the position itself!
Hint: Click the wrench icon to unlock the viewport and enable panning/zooming.
If you access Aloe software directly, like through Etherscan or a self-hosted node, you can choose to receive 100% of earned interest or donate a portion to charity. The only fees would be the gas cost of Ethereum transactions. However, if you're accessing the protocol through our (Aloe Labs) web app, we reserve the right to take a portion of earned interest as a fee. This fee is visible on-chain and is "locked in" (cannot be increased) as long as you maintain a non-zero balance.
Anyone! You don't need permission to use the core Aloe software. That said, certain features on our (Aloe Labs') web app may not be available in certain jurisdictions. Always check local regulations before dealing with magic internet money!
Every borrower has an Aloe smart wallet which holds their assets and keeps track of their liabilities (debt). As long as the value of assets > liabilities + wiggle room, the borrower is free to HODL, trade, or market-make with the funds in their smart wallet. However, if Aloe software detects that the wiggle room is shrinking too much, it seizes control of the smart wallet and allows other people (liquidators) to close out the borrower’s positions and repay lenders. Liquidators get a small reward for their trouble.
Ultimately there are no guarantees here, but since Ethereum is a public blockchain, you yourself could keep an eye on borrowers' activity and liquidate them if necessary.
Interest rates change over time, based on supply and demand. If many people lend and few borrow, interest rates will be low. If few people lend and many borrow, interest rates will be high.
There are two big differences:
1. On other platforms, you're forced to deposit into one big pool containing 10+ cryptocurrencies. If even one asset fails, the entire pool suffers. Worse yet, they can add/remove assets from the group without your consent. Aloe solves this by letting you pick exactly which assets you trust, and it'll never override your decision.
2. When borrowers ask for money, other platforms give it to them outright. This sounds great, but it means that to borrow $50 of ETH, you'd have to post $100 of collateral. Sometimes useful, but kinda silly! Aloe solves this by giving borrowers smart wallets. If they do reckless things, Aloe can veto them. This means Aloe can safely give out much larger loans, opening up new use-cases like leveraged market-making.
Metaphorical Use of Financial Terms; Lack of Legal Recourse for Funds. When used in connection with Aloe, the terms ‘debt,’ ‘lend,’ ‘borrow,’ ‘collateral,’ ‘credit,’ ‘leverage,’ ‘bank,’ ‘yield,’ ‘invest’ and other similar terms are not meant to be interpreted literally. Rather, such terms are being used to draw rough, fuzzy-logic analogies between the heavily automated and mostly deterministic operations of a decentralized-finance smart contract system, on the one hand, and the discretionary performance of traditional-finance transactions by people, on the other hand.