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 “wrapping” service that turns non-EVM (or non-mainnet) tokens into ERC-20 collateral that the protocol can natively use as collateral.

How the Wrapping Flow Works

Step	Action	Purpose
1. Token Request	Asset Manager emails [email protected] 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	Asset Manager sends native Token X to an Arkis custody wallet. Arkis mints and transfers an equal amount of arkisX to the Asset Manager’s Ethereum wallet.	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.

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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 → [email protected]

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.