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Product Docs
  • Welcome to AZKA FINANCE
  • AZKA Token Murabaha Overview
    • General
    • System Components
    • Protocol Architecture
    • Token Types
    • Use Cases
    • AZKA RoadMap
  • Murabaha Pools V1
    • Providing Liquidity
    • Pool Metrics
    • vROI
    • Murabaha Fee Rate Curve
    • Shariah Considerations
  • Executing Murabaha V1
    • Pre-Requisites
    • Initiating Murabaha
    • Executing Murabaha
    • Quote Methodology
      • Amount of Murabaha Token Required (AMTR)
      • Required Amount of Currency (RAC)
    • Shariah Considerations
  • Managing Murabaha V1
    • Managing Murabaha
    • Liquidation Parameters
    • Liquidation Mechanics
    • Shariah Considerations
  • Token Murabaha Risk Framework
    • General
    • Asset Risk
    • Liquidity Pool Risk
    • Liquidation Risk
    • Risk Parameters
  • AZKA Token Design and Tokenomics
    • General
    • Specific Utilities (AZKA, vAZKA, dLP)
    • Token Distribution
    • vAZKA
      • vAZKA Reward Distribution
    • dLP (Dynamic LP)
      • Initiating dLP
      • vAZKA Murabaha Eligibility
      • Managing Eligibility
      • Claiming vAZKA
  • Governance
    • General
    • DAO Structure and Policies
    • azTeams
  • Developer Docs
    • Murabaha Pools
    • Executing Murabaha
    • Liquidations
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  1. AZKA Token Murabaha Overview

System Components

A visual flow of agents and AZKA components

PreviousGeneralNextProtocol Architecture

Last updated 1 year ago

The diagram below illustrates the core components, agents and actions that define the AZKA Protocol's Murabaha Product. The diagram offers a simplified and conceptual representation of AZKA’s Token Murabaha system, tailored for user-friendly visualisation. In practice, the protocols components are structured and contained slightly differently at the smart contract level.

  • Liquidators: These are sophisticated external agents that are constantly scouting the blockchain for opportunities that would generate them a quick profit due to some existing price discrepancy or 'free lunch'. These agents would essentially identify any debt that has become under-collateralised or has reached expiry and then compete to be the first to receive the liquidation incentive. The AZKA protocol is independent of such agents and does not benefit in any shape or form from liquidations.

  • Murabaha Takers: These agents specify a Murabaha token (ie, ARB, UNI, BAL, LDO, FXS, CRV), the currency token they wish to have their debt denominated in (ie, USDT, ETH, WBTC) and the duration by which they will repay the debt (30 days - 365 days). These agents must have adequate collateral (ie, ETH, WBTC, other asset types) to ensure against default. If the value of the Murabaha takers collateral reaches a specific liquidation threshold or has reached expiry, the collateral can be liquidated to repay debts. Depending on what currency token the agent selects, the Murabaha will be facilitated using the liquidity available in relevant currency pool and hence, the Murabaha taker will incur a debt to that pool.

  • Liquidity Providers: These agents supply currency tokens into selected pools in order to facilitate Murabaha for agents requiring financing. They earn a yield in the form of the profits charged for executing Murabaha. The yield for a pool can be seen as the 'Profit Rate'.