Augmented Finance vs Aave & Compound: Higher Yields, Better UX, Great Security, and More

Sometimes it can be confusing which lending protocol to use to protect and increase the value of your crypto holdings. Currently leading lending protocols – Aave and Compound – offer little in the way of development for the industry as a whole.

DeFi: still early stage of development

DeFi x AI

DeFi has enormous potential that hasn’t been fully unleashed. The existing collateral-based DeFi lending approach can definitely be improved. This can be achieved by using AI to analyze user operations (similar to credit rating).

User experience

This is a massive deterrent for novices that just aren’t able to understand what is going on when they open up the platforms. Better user experience in the form of simpler-to-use platforms would drastically lower the threshold for getting into DeFi and would open up the chance for more people to achieve financial independence.


How is Augmented Finance different?

Augmented Finance offers many advantages over competitors like Aave and Compound:


Unlike Aave and Compound, Augmented Finance is launched fairly:

  • No pre-mine
  • No pre-sale
  • No ICO

We treat all liquidity miners equally based on their contribution to protocol adoption. As such, 68% of AGF tokens are distributed to liquidity miners; compared to 40% of COMP distribution and 18.75% of AAVE.


The yield (APY) on assets will be much higher than on Aave and Compound, driven by the accelerated yield farming program.


Unlike Aave and Compound tokens, AGF token uses the mechanism proposed by Andre Cronje to encourage users to keep AGF for the long term. The xAGF token is received for locking AGF. Holding of xAGF enables: 4x yield boost, getting a share of protocol’s treasury, and voting on DAO proposals and protocol parameters.


Unlike Aave and Compound, Augmented Finance will be distributing the protocol’s treasury to the holders of the governance token — AGF.


The current generation of lending protocols such as Aave and Compound are based on collateralization models and ignore many other factors that can enable robust borrower-lender dynamics. Augmented Finance will factor not only collateralization levels but also liquidation history, interactions with other lending protocols, and transactional patterns to develop an intelligent and quantitative profile of borrowers and lenders. Think about this trend as an intelligent credit rating system for DeFi protocols.


Current DeFi user interfaces and experiences (UI/UX) are complicated. We make DeFi simple and understandable, that’s why we invest much time on designing and testing UI/UX.


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Augmented is on a mission to build an open, efficient, and globally accessible financial system.