INTRODUCING ARC FINANCE: THE LaaS INFRASTRUCTURE BASED ON AUM ALGORITHM
DeFi1.0 is currently wreaking havoc on the standard DEX and other DeFi tokenomics ecosystems. Arc Finance based on DeFi2.0 and is built on the Automatic Unlocking Mining (AUM) algorithm and uses liquidity premium trading to allow projects with low liquidity to make bigger transaction profits while projects with strong liquidity keep their profits. Arc Finance uses the AUM algorithm to execute liquidity premium trading, allowing projects with low liquidity to profit more from trades. The liquidity value has aided the growth of the DeFi economy from the YFI to the DEX based on the AMM algorithm. Liquidity creates the Matthew effect while also providing a robust income-yielding pool for money. The money are allocated to popular LP pools first, followed by high-yielding project pools. The latter will almost certainly create a predatory effect among early-stage funds, allowing whales to reap the early benefits; This is the liquidity value-based market flaw induced by DEX
In the crypto industry, Arc Finance is dedicated to redefining the DeFi 1.0 paradigm. It adds a layer of new economic infrastructure to the ecosystem, allowing it to raise the liquidity value of funds, produce liquidity premiums, and capture the value of these premiums. Even if projects use GameFi or other NFT approaches to diversify revenue streams, this market flaw persists. The root of the problem is the way the funds are spent. The majority of them simply offer income or capital flow incentives based on traditional market liquidity. Platform ecology in DeFi2.0 should be built around the active provision of fund liquidity, such as Arc Finance’s liquidity premium service. It encourages consumers to engage in active market behaviours in order to supply premium liquidity to market funds. Arc Finance projects are less reliant on whales, but they can attract a large number of regular investors who will actively participate in the transaction and the project’s ecosystem creation.
The Arc Finance Mechanism
The AUM algorithm is a new, simple, and straightforward technique that unlocks and releases locked r-Tokens using the user’s transaction activity as a benchmark. The project Token deposited by a user into a third party is converted into r-Token at a 1:1 ratio, which must be unlocked in order to become a freely circulating Token. Meanwhile, the platform will reward users with additional platform tokens for their great behaviour on the site. The basic rule is that the more transactions you make, the more r-Tokens you unlock. The algorithm adjusts the speed at which r-Tokens are unlocked automatically, allowing customers to earn larger APYs for the same cost. These algorithms are based on the following four technologies:
Timelock Mechanism
Heterogenous Framework
The Wormhole Protocol
Tower BFTThe ARC platform has benefited greatly from the crypto community's resources and wealth, as well as an increasing capital commitment from institutions. While ushering in the DeFi 2.0 era, we want to make sure that the adoption of Arc Finance properly addresses the problems that the DEX platform is now experiencing.
Arc Finance's market operation is based on the AUM algorithm. This method encourages users to engage in active market activity while also providing liquidity premium value to market funds that can be activated. As a result, projects with low liquidity can trade more profitably, while high liquidity projects can continue to trade successfully. This new system encourages consumers to engage in active market behaviours while also providing liquidity premium value to market funds. Contact us:
