# Non-EVM Assets as Collateral

Arkis currently settles loans and liquidations on Ethereum mainnet, yet the off-chain Margin Engine can ingest price feeds from **any** venue—other EVM chains, Solana, even centralized exchanges.\
To unlock full flexibility for borrowers, Arkis offers a <mark style="color:green;">**“wrapping”**</mark> service that turns non-EVM (or non-mainnet) tokens into ERC-20 collateral that the protocol can natively use as collateral.

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### How the Wrapping Flow Works

| Step                         | Action                                                                                                                                                                                         | Purpose                                                                          |
| ---------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------- |
| **1. Token Request**         | Asset Manager emails **<operations@arkis.xyz>** requesting collateralization of Token *X* (e.g., JLP on Solana, HYPE on HyperEVM).                                                             | Begin whitelisting process.                                                      |
| **2. ERC-20 Issuance**       | Arkis deploys **arkisX** (an ERC-20 that represents Token *X* 1-for-1).                                                                                                                        | Makes the asset visible and transferrable on Ethereum.                           |
| **3. Custody Transfer**      | <p>Asset Manager sends native Token <em>X</em> to an Arkis custody wallet.<br>Arkis mints and transfers an equal amount of <strong>arkisX</strong> to the Asset Manager’s Ethereum wallet.</p> | Establishes a 1:1 backing reserve.                                               |
| **4. Pool Creation**         | Arkis spins up a dedicated Liquidity Pool where **arkisX** is a whitelisted collateral asset.                                                                                                  | Enables borrowing against the wrapped token.                                     |
| **5. Pricing & Risk**        | Margin Engine pulls the official oracle/price feed for Token *X* (e.g., Hyperliquid price for HYPE, Pyth feed for JLP) and assigns the same stress-tested multiplier to **arkisX**.            | Ensures the wrapped token inherits the exact risk profile of the original asset. |
| **6. Redemption (optional)** | To unwrap, the Asset Manager returns **arkisX** to Arkis; the protocol burns the ERC-20 and releases the underlying Token *X* from custody.                                                    | Maintains perfect 1:1 convertibility at all times.                               |

> **Key principle:** Arkis never issues more **arkisX** than it holds of native Token *X* in cold/joint custody—guaranteeing full collateral backing.

### Why Use Wrapped Collateral?

| Benefit                            | Explanation                                                                                                               |
| ---------------------------------- | ------------------------------------------------------------------------------------------------------------------------- |
| **Cross-chain capital efficiency** | Borrow stablecoins on Ethereum against JLP, HYPE, or any whitelisted off-chain token without bridging liquidity yourself. |
| **Unified Risk Engine**            | Wrapped tokens plug directly into existing STV / Risk-Factor logic—no special treatment or manual haircuts.               |
| **No operational overhead**        | Arkis handles custody, mint-burn accounting, and pool deployment; Asset Managers focus on strategy.                       |

### Examples

| Native Asset                           | Chain / Venue          | Wrapped Symbol | Typical Use Case                                                        |
| -------------------------------------- | ---------------------- | -------------- | ----------------------------------------------------------------------- |
| **JLP** (Jupiter Liquidity Pool token) | Solana                 | `arkisJLP`     | Borrow USDC to lever Solana LP yield or hedge exposure on CEX futures.  |
| **HYPE**                               | HyperEVM / Hyperliquid | `arkisHYPE`    | Use HYPE treasury exposure as collateral to obtain ETH, then farm LRTs. |

***

### Risk & Governance Notes

* **Custody Wallet** — multi-sig / MPC with segregated balances; addresses published for public audit.
* **Oracle Source** — only battle-tested feeds (Pyth, Chainlink, exchange mark prices) are accepted; feeds undergo the same latency and manipulation checks as native ETH-based oracles.
* **Stress-Test Matrix** — wrapped tokens inherit the same positive/negative multipliers assigned to their underlying asset class or volatility bucket.
* **Pool-specific Limits** — Arkis may set tighter Exposure Constraints and Liquidity Caps for newly wrapped assets until on-chain liquidity deepens.

### Getting Started

1. **Submit your token request** → <operations@arkis.xyz>
2. Arkis reviews liquidity, oracle quality, and custody mechanics.
3. Upon approval, the ERC-20 wrapper is deployed and the pool goes live—typically within a few business days.

Wrapping turns otherwise siloed assets into productive collateral inside Arkis, allowing you to borrow, hedge, and deploy capital with the same portfolio-margin benefits enjoyed by mainnet tokens.


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