Lending
Last updated
Last updated
In the Arkis Protocol, Lenders provide liquidity to fuel the credit extended to Asset Managers. By depositing their tokens into Liquidity Pools (LPs), Liquidity Providers earn a passive yield on these assets.
USDC, USDT, DAI
wETH
wBTC
However, if a Lender has a specific token on which they would like to get a yield, please contact operations@arkis.xyz for more information or use the Request Personalised Pool feature within Arkis Portal.
Within Arkis Portal, a user can see the list of whitelisted Liquidity Pools with which they can interact. By depositing into a particular Liquidity Pool, Lenders start financing margin trading of investment firms and hedge funds who can access the pool.
Each pool has the following set of parameters:
Pool Address, on-chain address of the pool.
Interest Rate Model (IRM), which defines how LPs get yield on their assets. Different pools within Arkis have different IRMs ranging from widely used utilization-based and fixed rate to more sophisticated (Expected Value or Funding Rate based).
Whitelisted Assets and Whitelisted Protocols define which assets Asset Managers can interact with if they borrow from this pool. This list defines collateral risk exposure of Liquidity Providers who provide liquidity into a particular pool.
Token Oracles: Oracle feed (can be off-chain price feed), which are used to price Whitelisted Assets.
Stress-Tested Values: % subtracted from an oracle price to get the price of an asset. Used as a margin of safety for Liquidation. Refer to Stress-Tested Value for more information.
Asset Managers who are allowed to borrow from the pool.
Margin Call Risk Factor Value: the value of Risk Factor when Asset Manager is margin called.
Liquidation Fee: protocol fee for liquidating unhealthy loan position.
Lenders can click the "Details" tab to see the details of each pool configuration.
A user can supply assets to the pool to earn interest by clicking the "Supply" button.
Upon depositing tokens into a liquidity pool, users receive corresponding LP tokens. These tokens represent the user's share in the pool and are the medium through which interest is accrued.
Interest on LP tokens is calculated every 30 seconds. However, the claimable interest value is only updated when a Leveraged Trader closes their Margin Account and returns the borrowed funds to the liquidity pool. This system ensures that the reflection of earnings in LP tokens is directly tied to actual liquidity returns, enhancing the accuracy of yield calculations.
