What is Archimedes ($ARCH)?
$ARCH is the utility and governance token of Archimedes, which is an experimental lending and borrowing platform.
Archimedes is an experimental lending and borrowing platform. We build it on top of AMMs such as Curve. We enable:
(1) Lenders (Liquidity Providers) to earn sustainable higher APYs
(2) Borrowers (Leverage Takers) to earn up to 10x yield of what yield-bearing stablecoins such as OUSD.
Liquidity Providers provide assets to Archimedes 3CRV/lvUSD pools and receive interest. The protocol pays interest in different assets, such as ARCH tokens and stablecoins. Most Curve pools depend on temporary bribes and uncertain gauge allocations for APY. But, Archimedes ARCH rewards have innate utility and a fixed supply.
Leverage Takers borrow from these pools to create leveraged positions on appreciating meta-vaults (like OUSD). Archimedes wrap each leveraged position with an NFT. User can trade these NFTs without the need to unwind the position.
Archimedes is an innovative leader in the lending / leverage crypto landscape.
What is $ARCH?
ARCH is Archimedes’ Utility and Governance token.
Here, we discuss only the utility of the ARCH token.
In every financial system, there is no such thing as infinite leverage. In other words, leverage is scarce.
At Archimedes, funding for leverage is coming from our Curve pool. To gain access to leverage a Leverage Taker (LT) needs to get a “ticket to leverage”. This is done with our utility token - ARCH.
Through an auction, the market sets the amount of leverage 1 ARCH gives access to. The more demand to leverage the more demand for ARCH.
On the LP side, the protocol distributes ARCH tokens to our Curve LPs. They lend the funds, thus they hold the "ticket to leverage" and LTs need to buy ARCH from LPs. This means LTs pay for leverage upfront.