Atlantis

Atlantis

Intro

Atlantis is an autonomous and decentralized money market that enables variable-based rates for supplying digital asset collaterals to the protocol and from borrowing digital assets from the protocol with over-collateralized assets. The tokenization of digital assets onto the Atlantis protocol will unlock liquidity from that asset without having to liquidate and/or sell that asset in the market. Money Markets allow users to tap into a peer-to-peer marketplace where all interactions are validated against open-source smart contracts running on the immutable Binance Smart Chain blockchain. The entire Atlantis protocol is operated by its community with no centralized control or team tokens exercising power over the protocol’s governance. Atlantis is designed to protect the equilibrium between borrowers and suppliers by allowing liquidators to handle bad vaults and collecting a premium for stabilizing the protocol. Atlantis users are in control by interacting with the ATL utility token to govern and operate the platform with consensus.

Atlantis Token (ATL)

The Atlantis Protocol is governed and rewarded by its native cryptocurrency called Atlantis Token (ATL). Atlantis Token is built and deployed on the Binance Smart Chain as a BEP-20 based asset. ATL enables users to create proposals, vote on proposals, and participate in liquidity mining incentives on the platform. With Atlantis, there will be a max supply of 6,500,000 ATL tokens to ever exist. 8% of the total supply will be allocated for project development and for creating the first few governance proposals. The other 92% of ATL will be distributed through mining.

To mine ATL from the protocol, Atlantis will evenly distribute ATL based on the weight of the distribution per market. 50% of the distributed ATL for each market will go to suppliers and 50% will go to borrowers. When the Governance is active, all the distribution ratios will be determined and voted on by the community.

aTokens

Within Atlantis, there are native tokens called “aTokens” that are pegged to the underlying supported digital assets. For example, aUSDC is pegged to USDC. The primary purpose of an aToken is to represent the proportionate value of the underlying asset on the protocol and to redeem the underlying asset at any time.

With the primary use cases defined, aTokens can be minted and burned directly on the protocol via the user-interface, API, or smart-contracts. The process to mint aToken means that the underlying digital asset has been supplied to the protocol. The burn process relates to redeeming the underlying asset and destroying the aToken that was used to claim it.

Suppliers

Atlantis Protocol users may supply various supported cryptocurrencies or digital assets onto the platform, which can be used as collateral for loans, supply liquidity and earn an APY. Users who supply their cryptocurrency or digital asset to Atlantis will receive a aToken, such as aUSDT, which is the only token that can be used to redeem the underlying collateral supplied.

Borrowers

Users who want to borrow any of the supported cryptocurrencies or stablecoins from Atlantis must first pledge collateral to the protocol. Once these assets are supplied, you can borrow based on the collateral ratio of the asset. Typically collateral ratios are set anywhere from 40% to 75%. For example, if Bitcoin has a collateral value of 75%, that means you can borrow up to 75% of the value of your BTC.

If the user has $100,000 in BTC supplied to the Atlantis protocol, that means they can borrow up to 75% of the value. However, if a user’s collateral value drops below 75%, or whichever collateral ratio percentage that a certain asset has, it could cause a Liquidation event, which will be discussed in the next chapter. Users will have a compound interest rate that will be applied per block on these assets and have no monthly payment obligations. To return the collateral, the user must pay off their origination balance and compounded interest back to the protocol. Market interest rates are determined by the specific yield curve that is designated in the contract. Depending on the market utilization, it will determine what the interest rate will be for that specified market.

Primary Use Cases

The ability to seamlessly hold new assets (without selling or rearranging a portfolio) gives new superpowers to dApp consumers, traders and developers:

• Without having to wait for an order to fill, or requiring off-chain behavior, dApps can borrow tokens to use in the BSC ecosystem, such as staking BNB to mine new coins during the Binance Launchpad period.

• Traders can finance new ICO investments by borrowing BNB, using their existing portfolio as collateral

• Traders looking to short a token can borrow it, send it to an exchange and sell the token, profiting from declines in overvalued tokens

Polygon (Matic) market

Atlantis Protocol as well as the Atlantis Dapp has built- in support for ethereum based side-chains. The first side chain to be integrated into Atlantis will be Polygon (previously known as Matic). This side-chain will be entirely independent from the main-chain and will have its own governance token called ATLX with the same supply and usage as the main-chain. Supported assets for the Polygon market will be either 'native' Polygon assets or 'bridged' ethereum assets.

Soon there will be a separate whitepaper for the Polygon side-chain with more in depth information about the protocol and its parameters.