Non-EVM Assets as Collateral
Last updated
Last updated
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.
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
Asset Manager sends native Token X to an Arkis joint-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.
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.
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.
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.
Submit your token request → operations@arkis.xyz
Arkis reviews liquidity, oracle quality, and custody mechanics.
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.
