> For the complete documentation index, see [llms.txt](https://aqualoan.gitbook.io/aqualoan/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://aqualoan.gitbook.io/aqualoan/portal/aqua-token.md).

# AQUA Token

## Token Information

{% tabs %}
{% tab title="BNB Chain" %}

```json
0xD1Fb55d61c2494ced556536F898D969e2F6Dd2Bf
```

{% endtab %}

{% tab title="Arbitrum" %}
coming soon
{% endtab %}

{% tab title="Ethereum" %}
coming soon
{% endtab %}
{% endtabs %}

#### **AQUA Overview**

AQUA is the native token of the Aqualoan ecosystem, serving as the cornerstone for governance and security. It incentivizes staking through a robust rewards mechanism, promoting long-term engagement and protocol stability.

**Trading Platform:** AQUA tokens can be bought and traded on PancakeSwap, deployed within standard liquidity pools.

**Supply & Borrowing Mechanics**\
When users supply assets to Aqualoan’s liquidity pools, they receive **A-tokens** in return. These tokens represent the user's deposit and accrue interest over time. The balance of A-tokens increases in real-time, reflecting the interest earned based on the **supply rate**—a dynamic rate determined by the market's borrowing demand.

#### **How A-tokens Work:**

1. **Earning Passive Income:** As the protocol generates interest from borrowers, A-tokens automatically grow in value. This ensures users earn passive income without needing to claim or reinvest their rewards actively.
2. **Dynamic Growth:** The rate of accrual depends on the borrowing demand in the Aqualoan ecosystem, making it a responsive and profitable mechanism during high market activity.
3. **Redeemable for Deposits:** At any time, A-tokens can be exchanged back for the original asset supplied, including any accrued interest.

***

#### **Reward Mechanism**

* **AQUA Rewards Pool:** A total of **30 million AQUA tokens** are allocated for stakers and will vest over a six-month period.
* **Exclusive Staking Incentives:** AQUA rewards can only be earned by staking in the Aqualoan **Safety Module**, where stakers contribute to the protocol’s security while benefiting from the reward pool.

***

#### **Key Features of Aqualoan Protocol**

1. **Interest-Accruing A-tokens:** Depositors receive A-tokens that grow in value as interest accrues, enabling seamless passive income.
2. **Safety Module Staking:** Staking AQUA secures the protocol and allows users to earn rewards from the protocol's growth.
3. **Flash Loans:** Uncollateralized loans repayable within the same transaction generate fees that enhance the ecosystem's rewards pool.
4. **Interest Rate Flexibility:** Borrowers can switch between **stable** and **variable rates** to optimize their risk and cost management.
5. **Decentralized Governance:** AQUA token holders participate in protocol governance, helping shape its future policies and growth.

***

#### **Example User Journey**

* A user deposits **10,000 USDT** into Aqualoan’s liquidity pool.
* They receive A-tokens representing their deposit. Over time, their A-tokens accrue interest at a **6% APY**, reflecting the growing supply rate from borrower activity.
* Simultaneously, the user stakes **500 AQUA** tokens in the Safety Module, earning additional AQUA rewards that vest over six months.
* As the ecosystem grows, the user’s A-tokens and staked AQUA rewards provide both **immediate** and **long-term** returns.

***

#### **Total Supply**

AQUA has a fixed total supply of **100,000,000 tokens**, with 30 million allocated to rewards, fostering ecosystem participation and growth.