# Rehypothecation

Aurelius features an integrated lending market, automatically making collateral available to borrow externally. This facilitates a constant, integrated yield source for Aurelius and aUSD.

When collateral is deposited into Aurelius to mint aUSD, it is made available on the Aurelius lending platform to earn interest from market participants seeking to borrow volatile assets.

Borrowing from the lending protocol requires collateral and Aurelius facilitates liquidations to protect the collateral of aUSD and Aurelius users.

One potential drawback is that if lending protocol utilization is high, aUSD borrowers who repay their debts may not be able to withdraw their collateral for short periods of time. This is managed by maintaining a reserve within Aurelius (<100% allocation to the lending market) and further offset by the high interest rates associated with high utilization and is typically mitigated by yield-seekers depositing into the lending platform, or borrowers repaying their high-interest loans, making collateral available.

The rehypothecation engine is isolated and extremely well-audited and battle-tested by Ethos Reserve and the OATH Foundation.

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If you have questions, please reach out to the Aurelius team in our official [Discord](https://discord.com/invite/Fe7Svu5rg3).
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