Introduction

AUM Protocol serves to bridge the gap between liquidity and tokenized assets. However, many problems exist with on-chain assets being a fully developed ecosystem. The lack of infrastructure and composability has hindered retail entry into diverse asset groups. AUM protocol will be the all-in-one ecosystem that addresses and solves each individual issue. As it stands, the current issues within the on-chain asset ecosystem are as follows: - Low liquidity environment - No peer-to-peer customization (no DeFi options) - Lack of data aggregation - Liquidity fragmentation - Interoperability concerns

The AUM protocol is designed to create a unified transaction layer that feeds multiple liquidity paths and enables peer-to-peer interactions. This creates a stable DeFi ecosystem that supports on-chain asset trading, growth, and onboarding.

Liquidity and On-Chain Assets

Liquidity has always been a concern for on-chain assets, primarily due to a lack of interest and cohesion between different asset classes. Liquidity can flow between different asset classes by bringing tokenizers and providers under one umbrella.

Peer-to-Peer Customization

For the past eight years, peer-to-peer optionality has been mostly non-existent for on-chain assets, much less cross-chain customization. This has fueled the lack of liquidity, as liquidity providers and a lack of trading options have left retail investors and yield farmers in the dark about how complex the ecosystem is. By building a collateralization layer and p2p trading under one KYC and liquidity banner, growth can be exponential for each asset class.

Lack of Data Aggregation

Live trading heavily depends on data being provided for the price of assets. Since on-chain asset-specific oracles do not exist, there is a heavy emphasis on providing or fostering their growth within the ecosystem. This will also increase trading frequency and reduce depegs for liquidity providers.

Liquidity Fragmentation

As the ecosystem grows, so does the number of protocols needlessly competing with each other for liquidity. By providing a unified liquidity infrastructure, the AUM protocol prevents financial markets from being divided into multiple trading venues, resulting in the dispersion of trading volume and reduced overall market liquidity. This can make it easier for traders to execute large orders efficiently, leading to lower transaction costs.

Interoperability

On-chain assets exist across various chains, contributing to each of the issues listed above. By providing the communication stack and infrastructure technology on Solana, the AUM protocol can onboard assets from all chains and enable institutions and banks to interact with investors and assets in a permissionless environment.