Our 3CRV/lvUSD Pool APY is primarily achieved with emission rewards from our native ARCH Token (as well as CRV). ARCH actually has utility as well as being our governance token unlike many other protocols native tokens.
Leverage Takers (Borrowers) can only open a leverage position by purchasing leverage (lvUSD) with our native ARCH token. This leverage fee ensures a high demand for ARCH tokens which in turn ensures the value for our 3CRV/lvUSD Pool Liquidity Providers that are rewarded in ARCH tokens.
Does the size of the pool affect APY?
Archimedes’ pool APY is tied to how much pool liquidity is used in borrowing activities and to its Dynamic Emissions, and not to how many CRV tokens.
The more liquidity in Archimedes’ pool, the more leverage can be offered. The more leverage Archimedes can offer, the easier it is to attract leverage takers. The more leverage takers Archimedes attracts, the higher the APY for its liquidity providers.
This is a positive flywheel.
How can I be sure that lvUSD will remain pegged?
Read more about how we maintain the peg for lvUSD Here.
How do I provide liquidity?
Read our Step-by-Step guide to providing liquidity Here.
How are you different from other lending and borrowing protocols?
Higher APY: We anticipate higher and more sustainable APY returns than other Curve pools.
Risk mitigation, with a focus on quality: We mitigate risk by supporting over collateralized tokens only. Additionally, we take steps to maintain peg and pool liquidity:
Carefully regulate the leverage cap: When we allocate more leverage it is always a small percentage of the total 3CRV in the pool
Treasury: The Archimedes Treasury can be used to replenish liquidity in our pool
Diversification: As we grow, we will support more protocols, increasing diversification. We envision a basket of yield-bearing stablecoins that is relatively low risk and high yield.
Original protocol and real/doxxed team: Archimedes is an original protocol. We are not a fork of any existing one.
Aligned incentives with users: We currently do not charge liquidation fees, while for other protocols liquidation fees are the main revenue stream.
Note: If you would like to provide liquidity before we launch, please contact firstname.lastname@example.org.
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.