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What is Azos

Overview​

Azos is a decentralized protocol on Ethereum where you can borrow against your crypto assets. Instead of selling your tokens when you need cash, you can lock them as collateral and receive AZUSD - a stablecoin you can use like any other cryptocurrency.

Core Concepts​

Collateral-Backed Lending​

Azos works like a traditional collateral loan, but with cryptocurrency:

  • You deposit your crypto assets (collateral)
  • The protocol gives you a loan in AZUSD (stablecoin)
  • Your original assets stay locked until you repay the loan
  • You keep any price gains on your collateral

What is AZUSD?​

AZUSD is Azos's stablecoin - a cryptocurrency designed to maintain a value of $1 USD. Key characteristics:

  • Stable Value: Stays close to $1 through various mechanisms
  • Backed by Real Assets: Every AZUSD is backed by more than $1 of collateral
  • ERC-20 Token: Works with all Ethereum wallets and applications
  • Redeemable: Can always be used to pay back loans and unlock collateral

Supported Collateral​

Currently, Azos accepts three types of tokens as collateral:

  • KLIMA: Klima DAO's carbon-backed token
  • USDGLO: Global Dollar's impact stablecoin
  • HLSP: Helios Blended Pool Token (HLSp)

How It Works​

Opening a Position​

  1. Connect Wallet: Link your Ethereum wallet to the Azos app
  2. Choose Collateral: Select which supported tokens you want to use
  3. Create Safe: Deposit your tokens into a secure smart contract
  4. Mint AZUSD: Generate stablecoins based on your collateral value

Managing Your Loan​

  • Monitor Health: Keep track of your collateral-to-debt ratio
  • Add Collateral: Deposit more tokens if needed to stay safe
  • Repay Debt: Pay back AZUSD anytime to reduce your loan
  • Close Position: Repay all debt to unlock and withdraw your collateral

Key Terms​

  • Safe: The smart contract that holds your collateral
  • Collateral Ratio: The value of your collateral divided by your debt
  • Stability Fee: The annual interest rate on your AZUSD loan
  • Liquidation: Automatic sale of collateral if your position becomes too risky

Built on Proven Technology​

Azos extends the architecture of successful DeFi protocols:

  • MakerDAO: The original decentralized stablecoin system
  • Reflexer Labs: Advanced stability mechanisms and governance
  • HAI Protocol: Latest improvements in efficiency and user experience

This foundation means Azos inherits years of testing, security audits, and real-world usage from protocols that have handled billions in value.