Aquarius is introducing a new suite of decentralized, yield-generating assets anchored to Ethereum-based tokens. These assets include ETH, stETH (anchored to Lido’s stETH) and AAVE’s aUSDC, aUSDT, and aWBTC, each designed to bridge Stellar with the Ethereum ecosystem.
Problems Addressed & Solutions Provided:
Limited Access to Yield-Generating Opportunities: Solution: By introducing assets like stETH and aUSDC, Aquarius offers Stellar users exposure to Ethereum's DeFi yields directly on the Stellar network. This expands financial opportunities for users who can now earn yields from Ethereum protocols without leaving the Stellar ecosystem.
Complexity in Handling Crypto Assets Across Blockchains: Solution: The assets act as bridges, simplifying the complex process of moving funds between Stellar and Ethereum. Users can now interact with Ethereum-based yield protocols while enjoying the low fees and fast transaction speeds of Stellar.
High Custodial Risks: Solution: Shifting from a classic custodial model on Stellar to decentralized assets on Soroban reduces the regulatory and security risks associated with handling user funds directly.
Real-Time Yield Updates: Solution: Through the integration of a rebase mechanism and oracle updates, users will see their balances update in real-time directly within their wallets, mirroring the yield accruals seen on Ethereum.
Audience & Benefits:
Crypto Enthusiasts and DeFi Investors: Users seeking passive income through crypto assets can now access diverse yield options without managing multiple wallets or navigating complex cross-chain transfers.
Stellar Community: Enhancing the utility and appeal of the Stellar network by integrating it more deeply with the broader DeFi ecosystem, which may attract more users and developers to Stellar.
Functionality and Integration with Stellar/Soroban:
Minting and Burning Mechanisms: Utilizing Soroban smart contracts, Aquarius will automate the minting and burning of anchored assets. For example, when users deposit native stETH for stETH on Stellar, the corresponding stETH tokens are minted through a smart contract and vice versa for burning.
Oracle Integration for Yield Updates and Rebase Mechanism: Integrate with Ethereum’s rebase mechanisms via an oracle (like Reflector) to monitor and verify updates in the yield generated on Ethereum-based assets like stETH and aUSDC. This ensures that Stellar assets are updated in real-time to reflect changes in their Ethereum counterparts. Oracle data is secured by a decentralized network of trusted nodes, ensuring that yield updates are both accurate and tamper-proof.
Decentralized Financial Operations: The assets will participate in yield-generating activities by interacting with established Ethereum protocols like Lido for staking and Aave for lending. Soroban's capabilities allow these interactions to be programmed into the smart contracts, ensuring transparency and security.
Interoperability Facilitation: By creating a seamless link between Stellar and Ethereum, these assets enable fluidity of capital across the ecosystems, reducing barriers for users who wish to leverage opportunities across both platforms.
