Archi Finance is a composable protocol for leveraged yield farming strategies on Arbitrum. Find out more about its features.
Archi Finance is composable leveraged yield farming protocol. It has two sides to it: passive liquidity providers who earns low risk interests by supplying single-asset liquidity; and degen farmers who borrow those assets to achieve a higher APY. GMX will be the platform Archi integrated in v1.
Archi Finance, how it works?
This protocol has two sides to it:
Passive liquidity providers – lenders who seek passive yield and prefer lower risks. This can be seen similar to providing liquidity to Compound. Anyone can be a liquidity provider on Archi Finance.
Degen farmers – borrowers who wish to increase their position by borrowing liquidity from the protocol at multiples of their collateral. The liquidity they borrow can be 10x of what their notional size is.
The positions taken by degenerate farmers can be liquidated by anyone before the liquidity providers’ assets are exposed to the downside. If everything functions correctly and liquidators do their job, the protocol will return the liquidity providers’ assets to the pools.
The liquidations are based on the health factor.
Passive Liquidity Providers
Supply single-asset liquidity and earn low risk APY
You can start earning APYs by supplying single-assets on Archi which is as simple as lending on Compound and Aave. Besides, all the pools are isolated.
The assets you supply to the protocol can be utilized, or borrowed for leverage, by degen farmers who actively rebalance their positions or use other strategies. As borrowers, they will be required to pay interest, which accrues to the underlying pools of those assets, as per the protocol’s requirements.
The positions taken by degen farmers can be liquidated by anyone before the assets of liquidity providers are exposed to the downside. This enables the protocol to return liquidity providers’ assets to the pools, allowing Archi to provide composable leverage.
Up to 10x Leverage Yield Farming in GMX
Whitelisted investors are able to open a leverage position in Archi Finance. To protect the collateral assets, a delta-hedged strategy will be implemented in Archi v1.
Due to the nature of GLP, investors always face the risk of losing their native tokens when prices fluctuate. Archi Finance allows users to borrow funds in a delta-hedged way, which helps prevent such situations while also earning ETH rewards on GMX.
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