Single & Multi Pools
Archimedes’ Protected Single and Omni-Pools are designed to mitigate some of the most common risks users are exposed to when providing liquidity into an Automated Market Maker’s Pool, such as Impermanent Loss & Counterparty Risk.
When whitelisting pools, Archimedes ensures the Pool’s liquidity is diversified across a relatively high number of addresses.
When in a position, the Archimedes’ Guardrails monitor the pool by performing Health Checks every block, i.e. at all times. These checks, defined by the risk framework for the Protected Pools, look into specific parameters, such as Pool Balance, Liquidity Depth / TVL, and Share of Pool by Archimedes’ Vault.
If the pool is deemed “unhealthy” at any given time by the Health Checks, the Guardrails withdraw funds from the Pool and deposit into the Vault, and it deposits it back into the pool once the Health Checks flag it as “healthy” again.
Archimedes is moving the risk/reward curve up so that users are spending less risk for the same amount of yield. And because the Guardrails’ algorithm is constantly running to make decisions on withdraw / deposit, the user can “set and forget” their position.
It’s important to note that the Guardrails will not be effective against a single entity attack or exploit in the pool, but will be effective protecting users against subsequent events of an attack or exploit.