Articles #Arc Finance

Automatic unlocking mining is abbreviated as AUM. The algorithm adjusts the speed at which r-Tokens are unlocked automatically, allowing customers to earn larger APYs for the same cost.

The project Token that a user deposits with a service provider is converted into r-Tokens at a 1:1 ratio, which must be unlocked in order to become a freely circulating Token.

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 simple principle is that the more transactions you make, the more r-Tokens you unlock. However, the platform will award extra platform tokens during the transaction process to reward users for their great behavior on the platform.

The AUM mechanism requires the following four technologies as technological assistance in order to expand its application possibilities.

1. Timelock Mechanism
   A timelock is a sequence of instructions that is used to secure particular functionalities of a smart contract so that the feature can be realized over a certain timeframe. The function of transferring funds from the contract is normally locked by a timelock in the blockchain.
   After a 48-hour wait, the TimeLock smart contract executes Master Chef's set Migrator and transfer Ownership methods, ensuring the protection of users' cash.
2. Heterogeneous Framework: A Multi-chain Network
   Many distinct tokens, such as ETH, BSC, Flow, and SOL, are currently running on public chains. Liquidity interaction between such assets on various chains is tricky. To ensure this scalability and a diverse variety of integration, there is a multi-chain hybrid framework. The heterogeneous sharding function enables application scenarios that allow multi-chain, cross-chain, and asset interaction all at the same time. The heterogeneous sharding protocol seeks to tackle the bridging issue between several chains (e.g., public chains and chains for specific applications) inside the Arc Finance ecosystem, allowing for easy cross-chain trades.
   Community verification is required for the implementation and regulation of heterogeneous sharding. Community node validation certification at Arc Finance is acquired by staking the platform token vs USDT token pair. Users submit ideas for listing, governance, and other concerns in the community node's on-chain boardrooms. All proposals will be approved by public vote in the end. The outcome of the public voting is decided by more than half of the voted tokens.
3. Tower BFT
   The PoH-optimized variant of BFT is PBFT. BFT is a technique for dealing with malicious behaviour in distributed networks.
   By mandating a universal time source known as proof of history (PoH), Tower BFT allows the network to reach consensus. This establishes a persistent connection for all network nodes.

In Arc Finance, which features heterogeneous multi-chains, Tower BFT can determine the proper functioning and profit distribution of community nodes, as well as the efficiency of network assessment. The "community node timetable" plan must be prepared ahead of time prior to actually allocating nodes so that the ledger state used to generate the schedule can be verified.

The "community node timetable" can be scheduled in the following manner:

• To seed a reliable pseudo-random technique, employ the PoH scale height (a monotonically growing counter) on a routine basis.
• However, at this point, pick a leadership account at random from all staking accounts, and have them vote within the cluster’s set amount of ticks. The active set is the name given to this group of individuals.
• Sort the active set in order of equity value.
• To produce equity valued sorting, use random seeds to select nodes that are ranked by equity.
• After the amount of ticks specified in the cluster, this filtering becomes effective. The community node plan offset is the name given to this period.

Because of this imbalance, any new data disclosed to the root fork will not become active until the next period, when a new community node is established and the first block that crosses the epoch boundary is generated. If the partition does not last more than one epoch, communication will not be stopped and will proceed as follows:

When voting, verifiers keep their root forks up to current at all times.The validator will modify its community node schedule each time the slot height crosses an epoch limit.

Tower BFT allows Arc Finance to use heterogeneous sharding to authenticate time sources without requiring permission and to work before achieving a consensus, dramatically improving the platform ecology’s scalability and liquidity.4. The Wormhole Protocol

The Wormhole protocol makes it easier for ETH holders to participate in the Arc Finance platform by allowing them to access the Ethereum ecosystem more efficiently and rapidly. It is a gateway that only connects Ethereum; It accepts ERC-20 and ETH tokens.

The AUM algorithm underpins Arc Finance's market operation. This strategy encourages users to actively participate in market activity while also offering a liquidity premium value to market funds that can be activated. As a result, projects with limited liquidity can trade more profitably, while those with high liquidity can trade successfully. This new structure encourages consumers to participate in active market behaviours while also providing market funds with liquidity premium value. 

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:

DeFi 1.0 employed AMM and liquidity mining strategies in the early days to recruit customers and gain liquidity in order to lay the groundwork for service delivery. LP providers were rewarded with project tokens during this procedure. Around the summer of 2021, the meteoric growth of DeFi was triggered by AMM and liquidity mining. The merger provided a framework for DeFi to deliver services such as DEX trading, loans, derivatives counterparties, and so on, in an industry where liquidity is critical.

However, such straightforward liquidity mining is complicated.

“The issue of opportunistic dumping not only harms investors, but it also jeopardizes the project’s future.”

Liquidity Premium Pool Protocol Liquidity Premium Mining Pool Service Protocol (LPP) is a key ecological area of Arc Finance. It enables consumers to make money quickly during the transaction procedure. The more transactions users participate in, the higher the premium income they will receive, and the more income will be deposited in the mining pool, forming a decent financial cycle and increasing the value of liquidity. Not a basic, particular mining pool, but a comprehensive economic and ecological idea.LPP has three sections:

1. single token LP mining pool protocol;
2. LP pair mining pool protocol; and
3. Re-minting LP mining pool protocol, according to Arc Finance.

• Single Token LP Mining Pool Protocol

Users can earn a triple return by using project tokens and ARC LP tokens, which work as liquidity vouchers: the unlocking revenue from the token premium, the extra network token incentive, and the tax refund on transaction fees.“AUM is a mining algorithm, not a market-making process. It’s an algorithm that instantly modifies the speed at which mining output is unlocked so that customers can earn higher APYs for the same amount of money.” The unlocking speed is proportional to the quantity of lock LP tokens, as calculated by the following formula:

Unlocking speed = (k) * (the amount of locked LP).
Where; k = Amount of r-Tokens unlocked per block time (0.00000029

The unlocking speed is adjusted using the AUM algorithm. The pace with which your r-Token is unlocked is affected by both transaction rate and staking amount. Users are attracted to trade and stake because of the AUM incentive, which is reinforced by liquidity mining, maximizing the value of liquidity.

• Combined LP Mining Pool Protocol

In addition to transaction rebates and repurchase and burn, Arc Finance provides a number of tools to encourage participants to engage in liquidity premium mining and leverage the value of liquidity. To make the incentive long-term and viable, it also uses a pair of LP mining pool protocol and a cycling mining pool, where part of the platform’s charges are used to buyback Arc and reintroduce it into the pool.

1. Users can choose between Arc Finance’s project tokens A and B.
2. Through smart contracts, Arc Finance creates related A-B staking automatically.
3. The newly produced A-B staking ratio is immediately assigned to users.
4. When users stake the tokens, they might get a greater APY matching to the combined LP mining pool procedures.

Participants must first lock a particular amount of tokens and obtain r-Token lock-in vouchers in order to engage in Arc Finance’s liquidity mining.

Two profits are created by staking dual tokens (staking proof):

1. Premium earnings.
2. Staking earnings.
   Unlocking speed = (k) * (Amount of locked ARC).
   Where; k = r-token (0.00000029)

• Real-time Swap Mining Pool Protocol

Profits from unlocking are earned via LP swaps (swap volume proof), and regular swaps accrue trade volume proofs, allowing profit release to be accelerated. Conversely, users will take action to trade as a result of these many incentives, bringing much-needed liquidity to projects with asset pools on Arc Finance. Simultaneously, Arc Finance's LAAS will assist programs in managing their basic market value, allowing them to concentrate on ecological sustainability.