afterDeposit

afterDeposit is an ERC-20 token that can be obtained by depositing the underlying token of veNFTs, i.e. AERO or VELO, to a lending market. Each afterDeposit can be redeemed for one corresponding token. However, during periods of high market utilization, withdrawals may be delayed until borrowers repay their loans. This risk can be minimized by lending to markets with lower loan-to-value ratios.

afterDeposit tokens can be staked in order to earn rewards from afterStaked, which derives revenue from veNFT voting rewards. Alternatively, users can choose to forfeit the rewards from afterStaked, and instead stake their afterDeposit tokens for After tokens.

The vote escrowed backing of an afterDeposit token can be calculated with the following formula, where $t$ is the total lent out, $b_l$ is the liquid backing, and $r$ is the loan-to-value ratio of the market.

For example, for a market with a 20% loan-to-value ratio, 100,000 AERO lent out, and 60,000 AERO borrowed, the vote escrowed backing for each token is 2 veAERO.

Therefore, the effective backing per token is 2.4 AERO, consisting of 2 veAERO and 0.4 liquid AERO. The effective total backing for the market is 240,000 AERO, consisting of 200,000 veAERO and 40,000 liquid AERO.