Ajna

Lending

Ajna is a peer-to-peer, oracle-less, permissionless lending protocol with no governance, accepting both fungible and non-fungible tokens as collateral

Risk Rating
Average
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
Ajna is a peer-to-pool, permissionless lending platform that requires no governance or external price feeds to function.
What we like less
Lenders cannot withdraw their deposits when there is an active liquidation and their deposit is temporarily frozen.
What it means for you
Ajna enables the listing of any asset to be lent or borrowed while minimizing risks to a single isolated market.
Information
Exploit/Hacks
One
Info
  • Website
  • Token: AJNA
  • Tags: Lending
Key Metrics
  • TVL: $22.7M (Rank #119)
  • TVL Ranking by Lending: #24
  • Blockchain: Ethereum, Base, Arbitrum, Optimism, Polygon
  • Chain TVL
    • Ethereum: $21.97M
    • Base: $760.03K
    • Arbitrum: $97.92
    • Optimism: $76.85
    • Polygon: $2.24
Risk Assessment
Average
Protocol Code Quality
Protocol Maturity
  • Latest protocol version launched recently in 2024; maturity less than three months increases technical risk as smart contracts are not battle-tested
  • Top 20% by total value locked slightly reduces risk
  • Core contracts are fully immutable
  • Moderate voting power concentration
Protocol Design
  • No death spiral concerns
  • Isolated markets enable asset risks to be contained to each individual pool without impacting the entire protocol
  • Robust controls in place to prevent risky borrowing
  • Robust mechanisms in place to ensure healthy liquidations
  • Robust methods to accrue protocol reserves
Things to know about Ajna

What is Ajna

Ajna is a novel peer-to-pool lending platform that aims to be the Uniswap of lending by enabling permissionless listing of any asset. Ajna is completely immutable with no protocol governance and does not require any external price feeds to function. Users can create pools for any asset with lending terms managed by the protocol's rules. The prices of these assets are not measured by price feeds but by lenders. Loans on Ajna are perpetual by nature and never expire. Like other lending markets, supply and demand affect the variable interest rate of each pool. Since there is no reliance on oracles, any pairing of collateral and quote tokens can be created. Borrowers on Ajna take out loans by pledging collateral and withdrawing quote tokens. Borrowers can add or withdraw collateral at any time, provided it leaves their loans sufficiently collateralized. Loans have a minimum borrow size, an origination fee, and a liquidation penalty. Lenders on Ajna choose what valuation or price they are willing to lend against by depositing quote tokens into specific price buckets. All deposits above the Lowest Utilized Price (LUP) or the Threshold Price (TP) of the least collateralized loan, known as the Highest Threshold Price (HTP), earn interest at the same rate. Deposits below the LUP earn no interest. Each loan's TP is set by the borrower and is the debt divided by the collateral. Lenders cannot withdraw their assets in two cases. First, if it would cause an otherwise safe position to be liquidated. And second, if there is an active liquidation that temporarily freezes their deposits.

How Ajna makes money

Each pool accumulates reserves from origination fees, deposit penalties, and net interest margin on loans. These reserves are sold in auctions where users buy the pool's underlying quote tokens with AJNA tokens. The AJNA token is then burned, thus reducing supply in the process. Reserves also serve as backup funds in case of bad debt.

How you make money on Ajna

You can lend your assets on Ajna to start earning interest at the exact prices you'd be willing to buy the collateral token. Due to the permissionless nature of Ajna, you can create markets for long-tail assets or even NFTs to be used as collateral as long as there is demand for it.