Archimedes is launching in February
G(r)eeks, the time is coming! Over the last year, we’ve been focusing on listening to our users and building towards our goal of unlocking long-term and accessible opportunities to the Galaxy! To accomplish this, our team has kept a constant finger on the pulse of the DeFi and we believe it’s paid off. Hopefully you’ll agree with us!
And now, we are thrilled to announce our upcoming launch dates, executed in two phases:
1. Curve 3CRV/lvUSD Pool launch: 2/14
2. Leverage Round launch: 2/20
But ser, what is Archimedes? No worries, we’ve got you covered!
Archimedes is a unique overcollateralized lending and borrowing marketplace launching on Ethereum Mainnet, shortly after announcing its $4.9M in seed fundraise led by Hack VC.
Archimedes attracts lenders (and liquidity) by offering long-lasting top of market APY. We developed innovative mechanisms, such as a Dynamic Token Emission rate, real yield, and representing a leveraged position of up to 10x on yield-bearing tokens with a tradeable NFT, featuring one of the most favorable risk to reward strategies in DeFi: stablecoins.
Lenders: Sustainable Top-of-Market Yields
For lenders (liquidity providers or LPs), the Archimedes platform was built to provide sustainable, top-of-market APY. To get there, we adventure into proposing a different solution to unsustainable tokenomics and LP rewards as more liquidity enters a pool.
We use the Dynamic Emission rate to create a tokenomic structure that ensures our native and utility token, ARCH, isn’t overinflated, problem that many other DeFi platforms face. Wait, there is more: we pay lenders with fees generated from borrowers (Real Yield), combined with the Dynamic Emission, designed to ensure sustainable top of market APY.
Borrowers: Up to 10x Leverage on Stablecoins Without Liquidation Mechanism
For borrowers (leverage takers or LTs), we provide the most advantageous risk-reward ratio via our up-to-10x-leverage strategy on yield-generating stablecoins, while choosing to not liquidate users in the first version. Don’t you love this? We do!
We also solve the incentive misalignment issue common in most existing leverage solutions, and the high risk of leverage built on non-stable assets. We aim at bringing in revenue for LPs from transparent fees on relatively lower risk products, not from taking funds from leveraged users by liquidating them.
Borrowers can take up to 10x leverage on their potential stablecoin yields by buying the leverage through our novel leverage pricing mechanism (similar to an auction, we call it “G(r)eek Auction”), which aims at finding a fair price. I.e., how much leverage should 1 ARCH token be able to buy.
Every time we make more leverage available, there will be an auction process (THE G(r)eek Auction) for Archimedes to sell and leverage takers to buy access to leverage. At every round of leverage, a pre-set starting price declines at a certain rate periodically, allowing users to buy leverage once they judge the price as being fair. However, since leverage is scarce, users willing to pay more for Archimedes’ leverage are more likely to secure a position in a specific round. In other words, users who believe that their chosen strategy of choice (starting with OUSD leverage only) will increase in APY over time, are more likely to enter the bid with higher leverage prices.
How often will Archimedes make leverage available? We will make leverage available as liquidity becomes unutilized with new liquidity entering the pool and/or existing positions being closed. Since it is nearly impossible to predict, we will make sure to announce in our Twitter, Discord, and Telegram any upcoming leverage rounds way ahead of time so all our users are ready for when that comes.
Like what you read? G(r)eeks, this is just one step towards our mission and we’re excited to see what we accomplish together as a community.
Learn more about the Archimedes project and how it generates real, stable top of market yields for users by visiting https://archimedesfi.com/ and following on Twitter, Discord, and Telegram.
Archimedes is an experimental protocol and carries significant risks: Smart contract risk, economic model risk, risk that the assets Archimedes introduces and many other types of known and unknown risks. Archimedes’ team never provides investment advice. This article is NOT financial advice. DYOR. Participate at your own risk.