Participants

In the Awake protocol three key roles elegantly interact: Investors, Borrowers and Verifiers.

Investors, those who provide USDC to the protocol for Borrowers to utilize, have two distinct paths for participating in Awake: as an Anchor or as a Liquidity Provider. All participants work in tandem to achieve trust through consensus. By aligning incentives, Awake achieves its goal of market accessibility and efficiency.

The Borrowers, SMEs and credit companies seeking financing from Awake, propose Borrower Pools for the network's assessment. These pools are essentially smart contracts containing the loan terms sought by the Borrowers, such as interest rates and repayment schedules. Verifiers vote to approve Borrowers, a required step before they can propose a Borrower Pool to Anchors. Verifiers are Awake officials with credentials in the field. They provide the protocol a human-level check guarding against fraudulent activity and earn rewards in exchange for conducting this work.

Anchors, strategically optimizing for yield and specificity, assess individual Borrower Pools, deciding whether to invest in them directly with first-loss capital. In return for undertaking this risk, they earn the protocol's highest yields.

Liquidity Providers, on the other hand, prioritize diversification and liquidity. By contributing second-loss capital to the Senior Pool, they rely on the expertise of the Anchors, as their funds are automatically allocated across all Borrower Pools. Together, these participants form a dynamic, collaborative ecosystem to support the growth of the protocol.