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

3 min readAug 23, 2021

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

Let’s face it, Aave and Compound are still small when we consider the grand scheme of things. This is because mass and institutional adoption of DeFi is still lagging and for the most part that is down to the complexity of today’s DeFi along with multiple security issues.

DeFi x AI

Augmented Finance is introducing a new generation of intelligent DeFi augmented by artificial intelligence (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

The other thing is that existing DeFi products have confusing interfaces.

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.

Security

Security also remains a big factor in the slow adoption of DeFi. A more serious, comprehensive approach to security will reduce risks and take DeFi to the next level.

How is Augmented Finance different?

Augmented Finance has optimized its protocol based on scientific research and agent-based simulations: a process by which its tokenomics is verified mathematically. Our efforts are geared towards providing accelerated TVL growth and bolster resilience through all market cycles.

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

FAIR LAUNCH

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.

HIGHER YIELDS

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

4X YIELD BOOST

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.

PROTOCOL TREASURY DISTRIBUTION

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

INTELLIGENCE ENABLED BY AI

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.

FRIENDLY USER INTERFACE

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.