Leveraging Lending Protocols

Ouija Protocol integrates with leading lending protocols, such as Aave and Compound, to obtain on-demand liquidity for executing swaps. When a user initiates a swap, Ouija deposits the input token as collateral and borrows the desired output token from the lending protocol. This process enables Ouija to tap into a vast pool of liquidity without requiring it to hold large amounts of each token in its pool, thus increasing capital efficiency.