[Archi Finance][FINAL][STIP - Round 1]

Archive Incentive Framework (Round 1)
1

SECTION 1: APPLICANT INFORMATION

Applicant Name: 0xT

Project Name: Archi Finance

Project Description: 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.

Team Members and Qualifications:

0xT (Co-founder CEO)
Matt (Co-founder CTO)
L.Cindy(Co-founder)

Project Links:

Website: https://archi.finance//
Docs: Welcome to Archi Finance - Archi Finance
GitHub: ArchiFinance (Archi Finance) · GitHub
Discord: Discord
Medium: Archi Finance – Medium
Twitter: https://twitter.com/archi_fi
Website: https://archi.finance/
Dune Analytics https://dune.com/matt_archi/archi

Contact Information:

Telegram: @archi_0xT (CEO) or @arthr_archi (PM)
Twitter: @archi_fi
Email: official@archi.finance

Do You Acknowledge That Your Team WIll Be Subject to a KYC Requirement?:

Yes

SECTION 2: GRANT INFORMATION

Requested Grant Size: 750,000 $ARB

Grant Matching: 1,350,000 $archi

Grant Breakdown: Archi Finance is a leveraged yield farming protocol. Due to market factors, the interest for both Degen farmers and passive liquidity providers has been continuously decreasing.

To ensure the platform’s healthy and stable growth, we aim to incentivize passive liquidity providers with ARB rewards on a monthly basis. Additionally, in order to encourage Degen users to increase their positions and earn more interest, we will be transitioning Archi tokens from previously rewarding passive liquidity providers to Degen farmers. All data can be queried and assessed through Dune.

  • 90% (675,000 ARB) will be equally shared between 6 passive liquidity pools
  • 10% (75,000 ARB) will be given to archi token stakers

More details on the grant usage are under Execution Strategy below.

Funding Address:

0x8a3d805e676BDDB391085b32aCa4687f09D0801f

Funding Address Characteristics:

The funding address is managed by a 2/3 Safe multisig.

Contract Address:
0x93D504070AB0eede5449C89C5eA0F5e34D8103f8
We will distribute ARB tokens using Merkle tree-based verification contract.

SECTION 3: GRANT OBJECTIVES AND EXECUTION

Objectives:

  • Generate substantial fees for passive liquidity provider
  • TVL over $20,000,000
  • Attraction of institutions
  • Degen position over $8,000,000

Key Performance Indicators (KPIs):

  • New partner every month(at least one) - twitter announcement
  • TVL, degen position- Presented via Dune dashboard sourced from verifiable on-chain data via Defillama_

How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?:
First and foremost, it is necessary to clarify that Archi Finance, as a native Arb protocol, is essentially designed to help users increase their earnings while mitigating risks. In other words, our primary business is to discover sustainable, high-yield strategies from other protocols and provide them to users. Archi’s growth is contingent on the development of other protocols.

Taking our current primary business, the GLP strategy, as an example, users can utilize our platform to provide liquidity and earn staking rewards for degenerate users. In return, degenerate users can employ delta hedged strategies for four different assets. As of now, there have been no liquidations, demonstrating that this strategy can generate additional income for users while ensuring security.

Recently, the cryptocurrency market has been influenced by various factors, resulting in a sustained period of low performance. This has led to a decrease in GLP APR, despite of our high usage, the real yield for passive liquidity providers have dropped to around 2%, and degenerate farmers’ earnings have similarly decreased to 14%.

In this context, receiving this grant is crucial for us. The specific details are as follows:

We intend to allocate this grant in a reasonable proportion and manner to enhance the earnings of our current passive liquidity providers, attracting more investors to pay attention to and participate in Archi Finance.

Currently, the platform’s native token, $Archi, is not offered to degenerate users. Given the decreased willingness of degen famers to open positions in the current market conditions, and in line with the first point regarding grant utilization, we will direct Archi tokens towards degens. This will stimulate platform growth and increase degenerate user earnings.

Archi Finance is constantly seeking secure, efficient, and stable protocols and formulating high APR strategies for users through the collective wisdom of our team and community. To ensure the stability of these strategies and the security of our contracts, we require substantial development time, audit costs, and communication and coordination efforts. We have never doubted the project’s future scalability, but due to the cryptocurrency market’s lackluster performance, there has been a gap before the introduction of new strategies. Acquiring and effectively utilizing this grant will help us navigate this challenging period.

As outlined above, obtaining this grant will not only allow us to better reward our investors who have consistently supported us but will also help us effectively weather the bear market. Moreover, it represents significant support for the future development of our platform, the expansion of our user base, and our continued contribution to the Arb ecosystem.

Justification for the size of the grant:

*All the calculations are based on current token price and pool size

Arb tokens will be distributed evenly according to above percentage over course of 4 month.

WechatIMG21942
WechatIMG21942812Ă—634 117 KB

With the current pool size, the grant from arb is expected to bring an additional yield of around 30% to our passive liquidity providers. We anticipate that the APR will stabilize at around 15%, resulting in a doubling of passive liquidity. When combined with the additional archi tokens we are providing to degen farmers, we aim to achieve our goal of 20 million during this period.

Execution Strategy:

Every month, Archi Finance will receive 186.5k ARB and distribute all of it to investors. 90% will be evenly distributed among six passive pools, and 10% will be rewarded to Archi stakers. The received ARB rewards will be proportional to the amount staked. All data will come from on-chain data, and users can verify the data by comparing it to DeFiLlama and Dune Dashboard.

As for the distribution mechanism, we have already deployed a Merkel tree contract that would record users’ reward data and receive their reward tokens (ARB). Users’ reward data will be regularly updated onchain upon deposit events, thus allowing them to claim their rewards monthly.

Grant Timeline:

  • After approval: 186.5k $arb
  • Before 1st December :186.5k $arb
  • Before 1st January :186.5k $arb
  • Before 1st February: 186.5k $arb

Do you accept the funding of your grant streamed linearly for the duration of your grant proposal, and that the multisig holds the power to halt your stream?:

Yes

SECTION 4: PROTOCOL DETAILS

Is the Protocol Native to Arbitrum:

Yes

On what other networks is the protocol deployed?:

Archi Finance is only deployed on Arbitrum at the moment.

What date did you deploy on Arbitrum?:

5th April, 2023

Protocol Performance::

Archi finance is very grateful for the opportunities and achievements that the Arb ecosystem has brought to us. As an innovative and dynamic team, we have always been committed to exploring market demands and addressing user pain points. At the same time, as a team leader with years of experience in the web3 field, through thorough research, active experimentation, and repeated verification, Archi finance emerged in association with the GMX platform.

With its unique strategic offerings, excellent code writing, and positive market feedback, Archi finance has distinguished itself among competitors. Over the course of six months, it has transformed from a relatively unknown startup project into a significant contributor to the Arb ecosystem with a TVL exceeding 14M. This not only affirms the alignment of our work with user needs but also establishes a strong foundation for the future development of Archi Finance.

Since launch

  • 12th April: TVL over $1,000,000
  • 20th April: TVL over $2,000,000
  • 28th April: TVL over $3,000,000
  • 31th May: TVL over $5,000,000
  • 15th June:$archi public sale finished at price of $0.27
  • 28th June: 3,000,000 GLP
  • 6th July: TVL over $10,000,000
  • 23th July: Archi token price at all time high $1.92
  • 1st Aug: 5,600,000 GLP which becomes the 4th largest protocol that holding GLP
  • 6th Aug: TVL over $14,000,000, top 30 protocols in Arbitrum ecosystem according to defillama.
  • 1th Sep: over 54% of total $archi has been staked

Protocol Roadmap::

Audit History::

A list of audits of Archi Finance can be found below:

Audits for Archi v2 smart contracts are ongoing.

SECTION 5: Data and Reporting

Is your team prepared to create Dune Dashboards for your incentive program?:

Yes. We have already created a dune dashboard to track all relevant data for Archi Finance. Please check link above.

Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread?

Yes. We are committed to providing bi-weekly program updates on the Arbitrum Forum thread.

Does your team acknowledge that failure to comply with any of the above requests can result in the halting of the program’s funding stream?

Yes

2 Likes
2

Good Entry is going to be the leader in the space!

1 Like
3

Archi for the win. Solid team.

4

Def support this proposal! :+1:

5

Hello @archi_finance thank you for your application! Your submission meets all requirements to be considered for a snapshot vote.

6

Great application, guys! I appreciate all the info about the project and the roadmap. btw, the new UI looks amazing.

7

good job Team ! Archi will melt faces on bull

8

Archi has done a great job and keep building on top of ARB dapps, first GMX, now GMX V2 and Pendle, hope this story could go futhure with STIP

9

Hello @archi_finance,

Now that your application has been marked eligible, please be advised of the remaining steps in the application process to be completed prior to the Review Period Deadline:

Please complete the following steps required for your application to proceed to Snapshot:

To change your proposal to final, please tag an Arbitrum Foundation Forum Moderator (@ stonecoldpat @ cliffton.eth @ eli_defi) by the Review Period deadline to notify them of your proposal’s readiness to proceed from [Draft] to [Final] status.

Once notified, the Arbitrum Foundation Forum Moderator will adjust your title from [Draft] to [Final] status. Once marked as [FInal], your application post will be locked by moderators and you will no longer be able to edit your proposal.

10

Thank you @Matt_StableLab for your guidance.

@stonecoldpat @cliffton.eth @eli_defi
We are ready to change from [DRAFT] to [FINAL]

Kind regards
0xT

1 Like
11

Post has been marked FINAL and locked.

12

Blockworks Research is inclined to support this proposal on the condition that the requested amount comes down from 750,000 ARB to 300,000 ARB based on, among other things, the anticipated sustainable impact on, and goodwill to, the ecosystem, metrics such as TVL / volume / fees on Arbitrum and overall, a comparative analysis of all submitted STIP proposals, the distribution of incentives across verticals, as well as, to a certain extent, the recommendations made by the Arbitrum Working Group through the four grant categories.

1 Like
13

Archi Finance: @archi_finance

From @Seedgov led by the @cattin delegation, we want to convey our support to this proposal. The reasons why we agree are as follows:

  • The protocol satisfies all metrics and, moreover, is a native Arbitrum protocol. Although the detail of the grants is accurate, we consider the amount to be high, however we decided to be in favor.

We want to clarify that this is not the final vote, since as we clarify in this release, the final vote is defined by our community. We also want to invite you to attend our Governance Call that will be held tomorrow in our discord .

14

As the ITU Blockchain Arbitrum Delegation Team, although a technically appropriate proposal has been prepared, we are voting against it for two main reasons. One is because the related incentive is not directly based on the user base. The other reason is that we find the requested incentive amount to be too high compared to the scale of the protocol.