Passive liquidity providers - lenders who seek passive yield and prefer lower risks. This can be seen similar to providing liquidity to Compound. Anyone can be a liquidity provider on Archi Finance.
Degen farmers - borrowers who wish to increase their position by borrowing liquidity from the protocol at multiples of their collateral. The liquidity they borrow can be 10x of what their notional size is.
The positions taken by degenerate farmers can be liquidated by anyone before the liquidity providers' assets are exposed to the downside. If everything functions correctly and liquidators do their job, the protocol will return the liquidity providers' assets to the pools.