Introduction
What is Arkis, and why does it matter?
Last updated
What is Arkis, and why does it matter?
Last updated
Arkis is a digital asset prime brokerage protocol for institutional borrowers and lenders to interact in a zero-trust environment.
Lenders get decentralized, secure credit provision vehicles with whitelisting, guaranteed repayment flow, and the maintenance of benefits from over-collateralization due to control over assets within the ecosystem.
Borrowers can achieve maximum capital efficiency within a guarded environment with up to 5x leverage and exotic collateral and margining options.
The DeFi market is characterized by its fragmentation across several axes:
Blockchain Diversity: Asset positions are spread across multiple blockchains, such as Ethereum, Avalanche, Polygon, etc., complicating the management of assets and leverage strategies across these platforms.
Variety of Protocols: Asset Managers engage with a multitude of protocols (for example, Uniswap, Curve, Lido, AAVE, Pendle), diversifying their investments across different activities. This diversification can lead to a portfolio where the aggregate performance may offset individual losses, leading to overall profitability.
Arkis aims to address these sector challenges through a series of targeted solutions:
Under-collateralized Leverage through Smart Contracts: By utilizing smart contracts, Arkis is able to offer undercollateralized leverage that optimizes capital use while maintaining a framework for risk management.
Portfolio Margining System: Instead of evaluating each position in isolation, Arkis employs a unified approach to maintenance margin calculation, considering the trader’s entire portfolio within Margin Account. This method allows for the potential offsetting of losses in one area with gains in another, thereby increasing capital efficiency.
Cross-Chain Margining: Arkis enables asset managers to access leverage across different blockchains as if it were a single, unified portfolio. This approach facilitates a broader range of trading strategies without the limitations imposed by chain-specific operations.
Yields for Lenders: Lenders on Arkis can earn yields on their assets without the typical risks associated with impermanent loss, supplemented by a share in the profits generated from borrowing activities. This arrangement aims to create a mutually beneficial ecosystem for lenders and borrowers. In the meantime, Arkis ensures that the lender's funds are secure by providing a safe investment vehicle for position monitoring and liquidation.
Arkis Protocol helps Asset managers get leverage in a capital-efficient, cross-chain, and flexible manner. Lenders can earn a passive yield on their assets by providing their assets for leverage operations while Arkis facilitates the process, making it secure for LPs.
