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)
Docs: Welcome to Archi Finance - Archi Finance
GitHub: ArchiFinance (Archi Finance) · GitHub
Medium: Archi Finance – Medium
Dune Analytics https://dune.com/matt_archi/archi
Telegram: @archi_0xT (CEO) or @arthr_archi (PM)
Do You Acknowledge That Your Team WIll Be Subject to a KYC Requirement?:
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 Characteristics:
The funding address is managed by a 2/3 Safe multisig.
We will distribute ARB tokens using Merkle tree-based verification contract.
- 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.
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.
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.
- 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?:
Is the Protocol Native to Arbitrum:
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
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.
- 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
UI update: In order to provide investors with a better user experience and to add modules for upcoming new features, Archi Finance will be updating its UI in October.
Pendle strategy Following the GMX strategy, Archi Finance is now focusing on the Pendle and join LSD ecosystem. Currently, the Pendle strategies are undergoing auditing, and the passive pool has already been added.
Archi v2 update Archi v2 update details
GMX v2 strategyGM strategy update details
A list of audits of Archi Finance can be found below:
Audits for Archi v2 smart contracts are ongoing.
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?