Tired of the lackluster 10% APR on your $GLP exposure?
Get ready for an exciting alternative, my friends.
Introducing @archi_fi, a leverage yield farming protocol built on top of $GMX.
Here's how it works 🧵
$ARCHI
In this thread I will cover;
1️⃣ What is $ARCHI ?
2️⃣ Working Mechanism
3️⃣ Passive Liquidity Providers
4️⃣ Degen Farmers
5️⃣ Tokenomics
6️⃣ Conclusion
1️⃣ What is $ARCHI?
Archi Fi is a two-sided yield farming marketplace. Borrowers can leverage their $GLP exposure by utilizing lenders' liquidity, and earn up to 50% APR.
At the same time, lenders earn a share of the interest earnings generated from borrowers' GLP yield.
Even if the $GLP APR has been steadily decreasing for the past few months, the $GLP supply has remained stable for the last 6 months.
This means that there is a huge potential in terms of liquidity to capitalize on.
2️⃣ Working Mechanism
Lenders provide liquidity to pools, including $ETH, $BTC, $USDC, and $USDT, in order to earn passive yields.
Borrowers who aim to increase their exposure on their $GLP can leverage their position up to 10x with their initial collateral.
3️⃣ Passive Liquidity Providers
LPs supply liquidity to isolated pools with a single asset.
Degen farmers require capital to leverage their positions, so LPs are incentivized with an interest share of the $GLP yield.
The yield for LPs depends on the following factors:
☑️ $GLP APR
☑️ Utilization Rate of the pool
☑️ Percentage of interest share, which can be modified by Archi DAO
4️⃣ Degen Farmers
Users can capitalize on two different delta-hedged strategies:
✅ 50:50 Strategy: Borrowed assets consist of 50% stable coin and 50% unstable coin, which you can choose.
✅ GMX Strategy: The ratio of borrowed assets is the same as GLP.
To ensure the safety of the protocol, Archi has developed a liquidation bot to incentivize liquidators.
5% of the principal is deducted for liquidation insurance upon opening a position. Liquidation is triggered when the health factor of the position drops below 40%.
5️⃣ Tokenomics
• Lock $ARCHI for $vlARCHI tokens, users receive:
☑️Share of protocol fees
☑️Governance rights on Archi DAO
The unlocking of $Archi tokens will occur gradually over a period of 16 weeks, and during this time, no additional earnings will be accumulated.
6️⃣ Conclusion
@archi_fi has a working product with exciting upcoming catalysts, including their V2 version and integration with other perpetual DEX LP pools such as $muxLP and $LLPs.
By carefully balancing the interests of lenders and borrowers, and implementing strategies to incentivize lenders,
They aim to create a powerful flywheel effect that propels their platform forward. I'll be watching closely.
ARCHI FINANCE ---> Leverage yield farming - $ARCHI for chads
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ARCHI FINANCE ---> Leverage yield farming - $ARCHI for chads
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