Lending
Last updated
Last updated
In the Arkis Protocol, Lenders provide liquidity to fuel the credit extended to Leverage Traders. By depositing their tokens into Liquidity Pools (LPs), Liquidity Providers earn a passive yield on these assets.
Participants can provide a variety of tokens to the liquidity pools. The tokens currently accepted include:
wETH
wBTC
USDT
USDC
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.
Arkis ecosystem consists of various pools with different risk parameters, whitelisted assets, and operations; thus, the yield across those pools also varies. As a result, Lenders can construct a credit portfolio within Arkis by allocating funds to various pools and defining their risk exposure.
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.