Archimedes FinancePrice

(ARCH)

Archimedes Finance is a decentralized finance (DeFi) protocol built on the Ethereum blockchain that specializes in leverage-as-a-service. It functions as a layer on top of Automated Market Makers (AMMs) to enhance capital efficiency for users. The protocol is designed to solve common industry challenges, such as unpredictable interest rates and high liquidation risks, by allowing users to open leveraged positions of up to 10x on yield-bearing stablecoins and other assets.

Unlike traditional lending protocols where interest rates fluctuate constantly based on market utilization, Archimedes uses a unique "G(r)eek Auction" mechanism. This Dutch auction variation allows users to pay a one-time upfront fee in ARCH tokens to secure leverage at a fixed cost for a specific duration. This provides borrowers with cost certainty. Additionally, the protocol utilizes its own synthetic stablecoin, lvUSD, to facilitate increased exposure to yield-generating assets.

The ARCH token is central to the protocol's ecosystem with three main use cases. First, it is used for accessing leverage; borrowers must pay for their positions using ARCH during auctions. Second, it serves as a governance token, enabling holders to vote on protocol parameters and new strategy integrations. Finally, holders can lock ARCH into liquidity pools to receive veARCH, which grants a share of protocol revenue and enhanced voting power.

To prevent gas wars and ensure fair access, Archimedes releases leverage in structured rounds. During a G(r)eek Auction, the price of leverage (denominated in ARCH) starts high and gradually decreases. Users can bid when the price matches their target return-on-investment. This system ensures that the market determines the fair value of leverage while providing a transparent entry point for all participants.

Users can typically provide collateral such as USDC, ETH, or WBTC to open leveraged positions in various strategy pools. While Archimedes aims for lower liquidation risk by avoiding predatory liquidation engines, the risk of liquidation still exists if the collateral value drops below a specific "liquidation buffer." Other risks include smart contract vulnerabilities and the potential for underlying yield-bearing assets to lose their value or depeg.

ARCH tokens can be traded on prominent cryptocurrency exchanges, including LBank. To manage your tokens, you can add them to your digital wallet using the official Ethereum contract address: 0x73c69d24ad28e2d43d03cbf35f79fe26ebde1011. Liquidity providers can also earn yield through ARCH emissions, performance fees from leveraged positions, and the upfront fees paid by leverage takers.