$ARCH - An experimental L/B protocol

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Maximize returns and minimize risk with the experimental Lending/Borrowing protocol on top of Curve. Borrow up to 10x leverage against your yield-bearing stablecoins without fear of liquidation - let's dive in! 🧵👇 @ArchimedesFi $ARCH

In this thread I will cover; 1️⃣ The problem of Curve emissions 2️⃣ Archimedes Finance - Solution 3️⃣ Lending - Where the yield comes from? 4️⃣ Borrowing - 10x Leverage 5️⃣ Dynamic Emissions 6️⃣ Tokenomics 7️⃣ Conclusion

1️⃣ The problem of Curve emissions CRV emission model is capping Curve's ability to scale: • Emissions are not dependent on actual trade volume. • APRs dry as large positions get into the pool. • CRV emission fluctuates, making it hard for investors to manage their position

2️⃣ Archimedes Finance Archimedes gives access to a curve pool of stablecoins 3CRV/lvUSD, which can accommodate massive investments without significantly lowering the pool's APY with its real yield and dynamic emission mechanism. ✅ Team: MIT alumni, doxxed ✅ Audited by Halborn

3️⃣ Lending – Where does the yield come from? One of the key problems of lending/borrowing protocols is that they implement a win-lose relationship among their stakeholders. $ARCH mitigates this by…

Lenders → Providing real yield from economic activities and algorithmic APY calculation Borrowers → 10x Leverage on stablecoins w/o liquidation mechanism, by paying all the interest upfront 👇.

Thanks to the dynamic emission mechanism of $ARCH, lenders can earn a sustainable top-of-market APY consisting of: ✅ Leverage Fee paid by borrowers on auctions ✅ Origination Fee (0.5%) ✅ Performance Fee (30%) ✅ $ARCH emissions

4️⃣ Borrowing Borrowers can only leverage up to 10x if they hold the $ARCH token, giving it an utility to $ARCH. Leverage rounds start with a Greek auction – where $ARCH purchasing power for leverage increases over time at a predetermined amount.

Let's take a look at how much net APY a borrower can get with a simple simulation for the current leverage round. TL;DR: $10,000 collateral and 10x leverage gives us more than net 25% APY at a $33 $ARCH price.

What happens if lvUSD depegs? If lvUSD < 1, borrowers will be incentivized to close their positions for immediate profit. If lvUSD > 1, the protocol will open more leverage to balance the pool.

5️⃣ Dynamic Emissions $ARCH emission is adjusted by using an algorithm that provides competitive APY at different market conditions. The algorithm takes into account: - Average APY of top 5 APYs on Curve - 7-day moving average of 3CRV/lvUSD - 7-day moving average of $ARCH

Controlling these variables are fostering competitive APYs, fat TVL, and protecting the token price and protocol. The protocol algorithm has a min and max emission to avoid edge cases and mitigate the risk of overinflation.

6️⃣ Tokenomics 45% 1 year cliff with 3 linear vesting 50% Dynamic emissions 5% Development

Degens are still unaware of the tokenomics and dynamic emissions of $ARCH. FDV is a real meme for it! Circulation supply as of now is 0.0619%, making its market cap: $2,042 million.

7️⃣ Conclusion A novel approach to L/B stablecoins with leverage auctions is a strong value proposition for $ARCH. When DAOs realize sustainable APYs with real yield are possible, they will bid their $ARCH for precious leverage, driving up the price of $ARCH in the process. NFA.

Leverage APY and Profit Calculator : docs.google.com/spreadsheets/d/132CKzt68FhRl2UF43SxYtdyf08xr7Rj7do_6Mi8DbWU/edit#gid=1117646091 Dune Dashboard : dune.com/archimedesfi/liquidity-provider-dashboard

Tagging the chads that might be interested @SmallCapScience @rektdiomedes @thedefiedge @crypto_linn @TheDeFinvestor @CryptoShiro_ @DAdvisoor @Slappjakke @crypthoem @crypto_condom @jake_pahor @LouisCrypto @thelearningpill @DeFi_Taha @DegenCamp @C4dotgg @DeFiMinty @Crypt0_Andrew