Today’s current decentralized finance (DeFi) ecosystem is fragmented. For example, if one wants to lend or borrow assets on Ethereum, they might use platforms like Aave or Compound. To trade, one might turn to Uniswap and for derivatives trading, one might use Perpetual Protocol. While these projects are useful and have their own strengths, they are not all-encompassing, forcing users to jump from one application to another. Fortunately, Aries Markets is here to solve that problem in the Aptos ecosystem. It aims to eliminate this hassle of having to use different DeFi apps by offering all of the relevant DeFi services within one platform.

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What is Aries Markets?

Aries Markets is a decentralized exchange (DEX) that offers users the ability to borrow, lend, swap, and trade with leverage. Unlike many other platforms where these services are split across various applications, Aries brings them all together in one place. By integrating these functions, Aries aims to offer users the kind of seamless experience you'd find on centralized exchanges like OKX or Binance—but without the need to trust a third-party with your assets.

Aries Markets is built on the Move programming language, which is designed for scalability and security. Move enables fast transactions and high throughput, ensuring that the platform can handle a large volume of trades with minimal delays. Aries also employs Move Prover, a tool that verifies the security of the smart contracts to minimize the risk of hacks and vulnerabilities.

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Key Features of Aries Markets

• Lending and Borrowing - Aries Markets allows users to deposit assets and earn interest, or borrow assets by providing collateral. This process is known as over-collateralized lending, meaning one must deposit more in value than you are borrowing. The benefit? They can earn yield on their deposits while having the flexibility to use the borrowed funds for other purposes. For example, a trader could deposit USDC as collateral and borrow APT to trade or invest in other opportunities, all while continuing to earn interest on their USDC deposit.

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• Margin Trading - Margin trading allows users to borrow funds and trade with leverage. This means that they can increase their exposure to an asset, potentially amplifying returns (or losses). Aries Markets facilitates spot margin trading, which is similar to regular trading but enables the use of borrowed funds. Users can access shared liquidity pools, deposited by others, to borrow and trade.

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• Swapping - Aries Swap is built on top of Aries Lend, allowing users to swap between different cryptocurrencies. This is done through Automated Market Makers (AMMs), which automatically find the best trading pairs and prices for one’s swaps. What’s unique is that users can swap directly from their deposited assets, making the process seamless.

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• Unified Margin Account - Aries simplifies account management by offering a unified margin account, similar to what one would find on a centralized exchange. This account lets users manage their risks across different financial products. For example, if one borrows USDC, swaps it for APT, and trades with leverage, all of these activities can be managed under the same account.

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• Interest-Bearing Tokens - When users deposit assets on Aries Markets, they receive interest-bearing tokens, which continuously accrue value as interest is earned. These tokens act as "DeFi Legos," meaning they can be integrated into other decentralized applications (dApps) on the Aptos blockchain, much like how one stacks legos on top of each other. This increases the flexibility of how one can use their assets.

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• Flash Loans - Aries also offers a unique type of flash loan, where the borrowed token and the repaid token do not have to be the same. For example, one could borrow Bitcoin and repay the loan with USDC. This provides more options than traditional platforms where one must repay the loan in the same asset.

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Aries Points: Rewarding User Contributions

The Aries Points system is a feature designed to incentivize users who contribute to the platform’s success. Whether by lending, borrowing, or referring others, users can accumulate Aries Points and unlock additional rewards. These rewards include potential fee reductions, yield boosts, and exclusive access to certain platform features.

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Here’s how it works:

1. Lending (Supplying)
   For each 1 USD worth of assets lent on the platform, users earn 1 Aries Point per day. The more one lends and the longer one keeps their assets in the platform, the more points they can accumulate. To be eligible for these points, a user must lend at least 100 USD worth of assets.
2. Borrowing
   Borrowing is rewarded even more generously. For each 1 USD borrowed, users earn 3 Aries Points daily. Since borrowing drives the liquidity of the lending protocol, Aries Markets encourages users to borrow by offering a higher points accumulation rate. Collateral used to borrow also earns lending points, so borrowers can benefit from both lending and borrowing.
3. Referrals
   Referrals offer three ways to earn additional points:some text
   • Commission Fee: Earn 10% of the points one’s referred user accumulates, without affecting their point balance.
   • Inviter/Bind Reward: Gain a 10% boost in points if invited by another user.
   • Invitee Reward: The person a user refers also receives a boost in points, encouraging more participation.

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Efficiency Mode: Maximizing Capital Utilization

Efficiency Mode (E-Mode) is another one-of-a-kind feature in Aries Markets designed to boost the capital efficiency of users. E-Mode allows users to borrow more with the same amount of collateral when assets exhibit price correlation, such as using APT tokens as collateral to borrow APT-related assets. This enhanced borrowing capacity makes it easier for users to maximize their exposure without increasing the risk of liquidation. E-mode also supports stable related assets, including zUSDC, zUSDT. Aries E-mode will support USDT once USDT is live on the Aptos chain.

E-Mode is particularly useful for assets that move in sync with one another (i.e., price correlation). For example, if a user deposits APT (Aptos tokens) as collateral, they can borrow a higher amount of stAPT (staked APT) than they would be able to with other assets. This provides a boost to the user’s borrowing power, allowing for more efficient capital usage across lending and borrowing. It also lowers the risk of liquidation by optimizing the borrowing ratio.

Efficiency Mode has been fully audited by OtterSec to ensure security and performance. Currently, it’s available for the APT category, with plans to expand to other asset categories in the future. Learn how to activate E-mode here!

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Navigating DeFi shouldn’t be a hassle, and Aries Markets is here to prove it. By combining borrowing, lending, swapping, and trading into one platform, Aries Markets makes DeFi simpler for both beginners and veterans alike. 

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