Passive Liquidity Providers

Supply single-asset liquidity and earn low risk APY

You can start earning APYs by supplying single-assets on Archi which is as simple as lending on Compound and Aave. Besides, all the pools are isolated.

Single Asset pools available in Archi Finance

The assets you supply to the protocol can be utilized, or borrowed for leverage, by degen farmers who actively rebalance their positions or use other strategies. As borrowers, they will be required to pay interest, which accrues to the underlying pools of those assets, as per the protocol's requirements.

The positions taken by degen farmers can be liquidated by anyone before the assets of liquidity providers are exposed to the downside. This enables the protocol to return liquidity providers' assets to the pools, allowing Archi to provide composable leverage.

However, earning on Archi involves certain risks, especially regarding liquidators performing their job correctly. These risks are also general across DeFi. Nonetheless, the Archi Finance team has developed a liquidation bot that anyone can run

How to calculate APR?

Capital is required for degen farmers to obtain leverage for their financial operations. To facilitate this, there are Liquidity Pools where anyone can become a liquidity provider by supplying assets to the pool. The profits earned from being a liquidity provider depend on the pool usage rate U and the interest share .

The interest share is the percentage of profits that the supplier obtains from the profits streamed from GMX. For example, a 50% interest share means that 50% of the interests generated from borrowed liquidity that are deposited into GMX will be awarded to suppliers. The interest share can be varied and decided by Archi DAO.

$$Supply APR = GMXAPR * U*S_{\text{lend}}$$

pageLiquidity Provider