> For the complete documentation index, see [llms.txt](https://docs.affluent.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.affluent.org/concept.md).

# Concept

### Affluent Market

**Affluent Market** is the core liquidity engine of the protocol. Users can supply assets as collateral, borrow against them, repay loans, and liquidate under-collateralized positions—all within a single, permissionless pool.

**Key Functions:**

* **Supply & Borrow**: Earn interest on supplied asset or use them as collateral to borrow
* **Dynamic Interest Rates**: Rates adjust automatically based on liquidity status
* **Oracle Integration** : Real-time price feeds secure collateral valuations
* **Liquidation Process** : Robust liquidation of risky positions to protect the lenders’ liquidity

### Factory

**Factory** enables permissionless creation of new markets. This allows anyone to create a pool without needing centralized approval, fostering open and decentralized lending.

{% hint style="info" %}
Once the codebase is fully battle-tested, pool creation will become completely permissionless.
{% endhint %}

**Key Functions:**

* **Seamless Pool Deployment**: Initialize a new market in decentralized manner
* **Standardized Parameters**: Consistent market setup for operational integrity

### Strategy Vault

Affluent’s **Strategy Vault** extends beyond simple liquidity allocation. It allows Vault Managers—appointed by the owner—to lend, borrow, swap, and rebalance on behalf of depositors, producing diversified and sustainable yields.

**Key Functions:**

* **Streamlined Yield Optimization** : One-click access to multi-step investment strategies
* **Adaptive Risk Management** : Expert teams continuously monitor and adjust risks
* **Permissionless Liquidity** : Freely deposit or withdraw anytime, subject to liquidity conditions
* **Transparent Operations** : All policies and transactions are fully auditable in real time