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Ajna Protocol current price is $0.08041 with a marketcap of $671,856. Its price is -10.70% down in last 24 hours.
The Ajna protocol facilitates peer-to-pool secured loans without governance and without externalprice feeds. Current lending and borrowing protocols which utilize smart contracts require activegovernance (e.g. to set rates and to update contracts) and/or rely on external price feeds (such as oracles like Chainlink). Because the pricing of collateral and parameterization of loans are leftto subjective decision making through governance rather than market forces, these protocolscarry both solvency and liquidity risk. Governance and maintenance overhead create barriers toentry in the market for lending and borrowing of on-chain assets. Ajna solves these problemswith its unique design, which is defined by the following features:Permissionless pool creation: Much like the popular DeFi primitive, the “automated marketmaker,” AMM, Ajna pools exist in unique pairs: quote token, provided by lenders and collateraltoken, provided by borrowers. Pools allow lenders to assess borrower demand for their quotetoken and for borrowers to assess lender demand for loans backed by their collateral. Pools arecreated permissionlessly, meaning anyone can create a pool to borrow arbitrary fungible tokensusing arbitrary fungible or non-fungible tokens as collateral. Therefore, no governance process isneeded to whitelist approved tokens.Price specified lending: Ajna replaces external price feeds (oracles) by allowing lenders to inputthe price at which they’re willing to lend. This price is the amount of quote token (i.e. the tokenthey are lending) they are willing to lend per unit of collateral pledged by the borrower. Forexample, if a lender deposits at price 100, they are willing to lend 100 units of quote token perone unit of collateral. Ajna pools separate prices into predefined buckets to reduce thecomplexity of the protocol, prices are therefore hereon referred to as “buckets”. Borrowers arethen able to borrow from the aggregated liquidity of these various buckets.