General FAQ

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How can I become a Lender on Arkis?

1. Select a Token: Determine which token you would like to deposit. A list of available tokens for deposit into Arkis pools can be found on our platform.

2. Choose a Pool Type: Decide whether you want to contribute to a Base Pool or a Profit Sharing Pool.

3. Deposit Tokens: Through the Arkis dApp, go to 'Supply' and 'Provide tokens into the pool' to deposit your chosen tokens and receive LP tokens in return. These LP tokens represent your share of the pool and the interest it earns.

Do Lenders face impermanent loss?

No, Lenders do not face impermanent loss with Arkis. Upon withdrawing your liquidity, you will receive the exact amount of tokens you deposited, plus any earned interest, providing a passive yield without the risk of impermanent loss.

What are Base Pools?

Base Pools allow Lenders to earn interest on their tokens through a dynamic APY, which is adjusted based on the demand for lending and borrowing. There is no profit-sharing in with Base Pools.

What are Profit Sharing Pools?

Profit Sharing Pools offer a mechanism to enhance potential yields for Lenders and reduce borrow APY for borrowers. In these pools, Lenders earn a guaranteed APY (which is typically lower than that of Base Pools) plus a percentage of the profits generated by Borrowers. Borrowers, in turn, benefit from lower borrowing rates compared to Base Pools but agree to share a portion of their potential profits.

What happens if an Asset Manager generates a negative P&L?

In Base Pools, the interest earned by Lenders is not affected by the performance of traders, ensuring Lenders receive their interest regardless. For Profit Sharing Pools, Lenders are still guaranteed a minimum APY, securing their interest earnings irrespective of trading outcomes.

How does Arkis enable undercollateralized leverage?

Through the use of smart contracts, Arkis locks traders' collateral and leverage, limiting operations to only those whitelisted actions on approved protocols. This ensures that traders can't transfer funds out of the protocol without settling their loans and restricts their activities to those sanctioned within the smart contract.

Can I withdraw funds from Liquidity Pools at any time?

Withdrawal availability is contingent on the pool's Utilization Ratio. If the ratio is below a certain threshold, funds can be withdrawn at any time.

Can I provide assets to pools on multiple blockchains?

Yes, Arkis operates on a multichain basis, allowing for asset provision on various chains. Currently, supported chains include Ethereum, Polygon, Avalanche, and Arbitrum, among others. Note that Pool APYs may vary between chains.

Is my collateral locked when borrowing through the Arkis Protocol?

No, the protocol permits collateral to be swapped for other tokens or used within liquidity pools on whitelisted protocols (such as Uniswap V2/V3, AAVE, Curve, Convex, Lido, etc.). The Arkis Margin Engine focuses on the portfolio's value in the borrowed asset, meaning collateral can be freely manipulated within the bounds of approved operations.