The Archimedes Flywheel - lv(ποΈ,ποΈ)
Why is it better for everyone involved if Archimedes has more lvUSD liquidity? π€
π‘ Answer:
More Leverage.
The more liquidity there is in the lvUSD/3CRV pool on @CurveFinance , the more LEVERAGE can be made available to borrowers.
π§΅
Why is it better for everyone involved if Archimedes has more lvUSD liquidity? π€
π‘ Answer:
More Leverage.
The more liquidity there is in the lvUSD/3CRV pool on @CurveFinance , the more LEVERAGE can be made available to borrowers.
π§΅
/2
When we say βmore leverageβ, we mean two things:
β Ability to open more positions
β Ability to open more positions at a higher multiplier
...
When we say βmore leverageβ, we mean two things:
β Ability to open more positions
β Ability to open more positions at a higher multiplier
...
/3
Archimedes' lv(ποΈ,ποΈ) Flywheel works like this π
Both sides of βοΈ Archimedes benefit WHEN the other is doing well.
So, WHEN LPs earn a higher yield, more LPs join the lvUSD pool, AND Archimedes can then raise the leverage cap for more LTs to join.
Archimedes' lv(ποΈ,ποΈ) Flywheel works like this π
Both sides of βοΈ Archimedes benefit WHEN the other is doing well.
So, WHEN LPs earn a higher yield, more LPs join the lvUSD pool, AND Archimedes can then raise the leverage cap for more LTs to join.
/4
ποΈ When the leverage cap gets raised, there is a new Leverage Round.
AND
ποΈ LTs can open new leverage yield positions on whitelisted yield-generating assets.
ποΈ When the leverage cap gets raised, there is a new Leverage Round.
AND
ποΈ LTs can open new leverage yield positions on whitelisted yield-generating assets.
/5
When LTs open new leverage yield positions, they pay fees using their collateral and $ARCH tokens, as well as a performance fee.
These fees reward lvUSD LPs π«΄ π°
When LTs open new leverage yield positions, they pay fees using their collateral and $ARCH tokens, as well as a performance fee.
These fees reward lvUSD LPs π«΄ π°
/6
Since lvUSD LPs are needed to start the π‘wheel, they need to be incentivized appropriately. Archimedes LPs benefit from:
Dynamic $ARCH emissions & Real Yield from π
ποΈ LT Origination Fees
ποΈ LT Performance Fees
ποΈ Leverage Fees paid in $ARCH
ποΈ Other incentive tokens
Since lvUSD LPs are needed to start the π‘wheel, they need to be incentivized appropriately. Archimedes LPs benefit from:
Dynamic $ARCH emissions & Real Yield from π
ποΈ LT Origination Fees
ποΈ LT Performance Fees
ποΈ Leverage Fees paid in $ARCH
ποΈ Other incentive tokens
/7
Youβll notice that a lot of our material says
βup to 10x leverageβ
Emphasis on the βup toβ.
This is because of the multiplier.
ποΈ Without enough liquidity from LPs Archimedes can not offer as much leverage to LT users.
OR
ποΈ As high of a multiplier.
Youβll notice that a lot of our material says
βup to 10x leverageβ
Emphasis on the βup toβ.
This is because of the multiplier.
ποΈ Without enough liquidity from LPs Archimedes can not offer as much leverage to LT users.
OR
ποΈ As high of a multiplier.
/8
Hereβs where G(r)eek Auction game theory comes into play π
If Archimedes has $5M 3CRV TVL in the Curve Pool -
Then it can provide an approximate 2.5M of leverage and if we use 10x it is 250k as collateral.
Hereβs where G(r)eek Auction game theory comes into play π
If Archimedes has $5M 3CRV TVL in the Curve Pool -
Then it can provide an approximate 2.5M of leverage and if we use 10x it is 250k as collateral.
/9
This makes Archimedes leverage scarce. π
Large LPs are likely to have more $ARCH tokens, thus they can also bid for leverage with more #ARCH than others might be willing to.
This makes Archimedes leverage scarce. π
Large LPs are likely to have more $ARCH tokens, thus they can also bid for leverage with more #ARCH than others might be willing to.
/10
The result of any potential bidding war with $ARCH token caught in between is the same π
LPs earn more yield from it, which is likely to result in a new turn of the wheel, benefiting all involved π€
The result of any potential bidding war with $ARCH token caught in between is the same π
LPs earn more yield from it, which is likely to result in a new turn of the wheel, benefiting all involved π€
11/
Whitelisted protocols want to have the leverage allocation to themself.
We see a πworld where they can incentivize and bid to get allocation for leverage.
This type of bidding for leverage could start an βοΈ $ARCH Wars narrative.
(more on that to follow)
Whitelisted protocols want to have the leverage allocation to themself.
We see a πworld where they can incentivize and bid to get allocation for leverage.
This type of bidding for leverage could start an βοΈ $ARCH Wars narrative.
(more on that to follow)
/12
ποΈ For now, we are heads down focusing on our launch.
Like & Retweet - the main tweet of this 𧡠thread if you found this thread informational.
ποΈ For now, we are heads down focusing on our launch.
Like & Retweet - the main tweet of this 𧡠thread if you found this thread informational.
https://twitter.com/ArchimedesFi/status/1627408252110774272
β’ β’ β’
Missing some Tweet in this thread? You can try to
force a refresh
γ
