Lender

Lenders, also known as Liquidity Providers, play a critical role in the Arkis ecosystem. They supply digital assets to Liquidity Pools and earn passive yield on their investments—all while avoiding impermanent loss or direct market risk.

Key Points

• Asset Contribution

  • Lenders deposit approved tokens (such as stablecoins or other whitelisted assets) into designated Liquidity Pools.

• Earning Passive Yield

  • Once deposited, these assets generate a passive yield. The yield comes from the interest generated by the borrowing activities in the pool.

  • Lenders enjoy a stable return on their capital without exposure to impermanent loss.

• Risk Mitigation

  • The structure of liquidity pools, combined with whitelisting and rigorous risk management, protects lenders from market volatility.

  • Arkis Protocol ensures that Lenders get their assets back by estimating the value of provided collateral inside Margin Account and Liquidating the collateral if it drops below certain value.

• Operational Simplicity

  • Lenders can easily deposit or withdraw funds based on the pool’s conditions, keeping the process straightforward and efficient.