I spent 24 hours researching Archimedes and what they have been building.
I did all the hard work for you today.
Here are my thoughts and analysis on @ArchimedesFi
#ARCH #Archimedes π§΅π
I did all the hard work for you today.
Here are my thoughts and analysis on @ArchimedesFi
#ARCH #Archimedes π§΅π
What I will be covering in this thread:
β’ What is Archimedes
β’ How does Archimedes work?
β’ What makes Archimedes different?
β’ Where does the yield come from?
β’ How do LPs earn yield?
β’ What are origination fees?
β’ What are performance fees?
β’ What is the $ARCH token?
β’ What is Archimedes
β’ How does Archimedes work?
β’ What makes Archimedes different?
β’ Where does the yield come from?
β’ How do LPs earn yield?
β’ What are origination fees?
β’ What are performance fees?
β’ What is the $ARCH token?
1/
How does Archimedes work?
The platform attracts liquidity to its Curve pools by offering high native APY.
How does Archimedes work?
The platform attracts liquidity to its Curve pools by offering high native APY.
Leverage takers then borrow from these pools to create leveraged positions on meta-vaults like OUSD. These positions are wrapped with an NFT, making them tradeable without unwinding.
2/
What makes Archimedes different?
Unlike other lending and borrowing markets, Archimedes only accepts blue-chip stablecoins as liquidity. This ensures that the platform is backed by collateral and generates high returns.
What makes Archimedes different?
Unlike other lending and borrowing markets, Archimedes only accepts blue-chip stablecoins as liquidity. This ensures that the platform is backed by collateral and generates high returns.
3/
Where does the yield come from?
The yield at Archimedes is generated from real economic activity, thanks to the platform's liquidity engine. Liquidity providers (LPs) are the suppliers of capital, and leverage takers (borrowers) are the demand for that capital.
Where does the yield come from?
The yield at Archimedes is generated from real economic activity, thanks to the platform's liquidity engine. Liquidity providers (LPs) are the suppliers of capital, and leverage takers (borrowers) are the demand for that capital.
4/
How do LPs earn yield?
LPs earn yield from origination fees paid by leverage takers, performance fees shared by leverage takers, and $ARCH tokens.
What are origination fees?
Origination fees are paid by leverage takers when they open a position on Archimedes.
How do LPs earn yield?
LPs earn yield from origination fees paid by leverage takers, performance fees shared by leverage takers, and $ARCH tokens.
What are origination fees?
Origination fees are paid by leverage takers when they open a position on Archimedes.
These fees are sent to the Archimedes Treasury and redistributed to LPs and treasury reserves.
5/
What are performance fees?
Performance fees are automatically deducted from the earnings of leverage takers and redistributed to LPs.
30% of the gains earned by leverage takers are shared with Archimedes LPs.
What are performance fees?
Performance fees are automatically deducted from the earnings of leverage takers and redistributed to LPs.
30% of the gains earned by leverage takers are shared with Archimedes LPs.
6/
What is the $ARCH token?
$ARCH tokens dynamic emissions and utility can be somewhat complex topics and worth diving into a bit more or linking to our threads or blogs diving into those topics.
What is the $ARCH token?
$ARCH tokens dynamic emissions and utility can be somewhat complex topics and worth diving into a bit more or linking to our threads or blogs diving into those topics.
Leverage will be scarce and will create buy pressure for ARCH whenever more leverage is made available. In the meantime, the dynamic emissions will ensure that the APY for LPs remains attractive.
I hope you've found this thread helpful.
Follow me @cyrilXBT and @ArchimedesFi for more.
Like/RT the first tweet below it goes a long way for this pageπ
Follow me @cyrilXBT and @ArchimedesFi for more.
Like/RT the first tweet below it goes a long way for this pageπ
https://twitter.com/cyrilXBT/status/1617792931217260546
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