FQA
Last updated
Last updated
Archimedes (acmd.finance) is a leveraged liquidity mining protocol that can provide high leverage while maintaining zero slippage. Archimedes will build the world's leading safe, efficient, open and transparent cross-chain decentralized financial service platform, allowing users to participate in Defi more efficiently and conveniently. Archimedes will provide diversified products and services, provide funds for those who lack funds, and improve the utilization rate and profitability of funds for users.
The differences and advantages of Archimedes and other lending projects are mainly in the following four points:
(1) High yield. The platform provides up to 8 times leverage, and users can choose to use leverage to maximize the rate of return, and the rate of return can be increased by up to 8 times.
(2) Zero slippage. Flexible funding to achieve zero slippage, rollback mechanism to ensure transaction price, self-developed virtual machine saves handling fees. The system will provide users with flexible asset allocation options based on user assets and market conditions, with slippage loss as low as 0%, saving users to the utmost extent. When using leverage on the Archimedes platform, users can borrow multiple currencies, which saves users as much as possible handling fees and slippage costs compared with similar products.
(3) Low risk. The platform shows users the original fund flow data of each step of the transaction, making it open and transparent, and at the same time accessing the Chainlink oracle machine to make the price more reliable. Before users determine their own strategies, Archimedes will show users all the data on the flow of funds from their positions to the use of leverage to borrow assets on the "what will happen" interface, so that risks are controllable. (4) Low threshold. Users can get income by depositing assets, realizing deposits are mining, and users can borrow assets from the platform with a low threshold. In addition, any user can participate in the liquidation of the platform as a liquidator.
On the [Clearing] page, when the risk rate of a user's position reaches the platform limit threshold, that is, greater than 100%, anyone can liquidate it. Click the [Clearing] button on the right to repay the position. After the clearing is successful, the liquidator will receive a clearing reward.
In the process of using leverage, when the user finds that the risk value of his leveraged position is too high, he can cover the position, or reduce the position and reduce the leverage multiple, which will reduce the risk value of his position to a certain extent and avoid being liquidated.
When the total value of the user's borrowed assets exceeds the borrowing limit, the risk rate of the position is greater than 100%, the borrower's assets will be liquidated (the liquidator will receive liquidation fee income). Due to currency price fluctuations, the user's position risk value will change from time to time. It is recommended that users control the position risk value in the process of using leveraged mining to avoid liquidation.
Please refer to the "Leverage Mining" document description in the "Tutorial Guide" section:
Archimedes does not support direct mortgage loans. When users want to double their mining, Archimedes provides tools with up to eight times leverage to help users borrow money to leverage greater income. The source of borrowing is the mortgage lending platform cooperated by Archimedes.
When users are liquidated, part of their positions (LP assets) will be used by the liquidator to repay the loan and collect liquidation fees, and the remaining LP assets will continue to be mined without being affected by the liquidation. The liquidation fee is the liquidation reward (3%~5%) obtained by the liquidator, which is the position lost by the liquidated user.
In order to ensure the security of the agreement, the platform has set a debt price factor (PriceFactorBorrow) for each token used as debt, and a collateral price factor (PriceFactorCollateral) for each LP token, where the debt price factor is slightly greater than 1. The collateral price factor is a number slightly smaller than 1.
Archimedes will continue to update and iterate. In the near future, Archimedes product development includes but not limited to:
Support more decentralized exchanges to increase leverage;
Support more digital currency assets;
DAO (Decentralized Autonomous Organization) governance;
Open mortgage lending;
Cross-chain to ecosystems such as ETH, Binance and Solana;
Open mortgage to generate stable currency.
Liquidity providers face the risk of impermanent loss. Note: This is the same risk as participating in other liquidity providers in the AMM pool. Leveraged liquidity providers (more than 1 times) also bear the risk of being liquidated: when the position risk rate exceeds 100%, it will be liquidated. Liquidation may occur when the price of lent assets rises and the price of mortgage assets falls.
When the market fluctuates sharply, if the liquidation executor does not make the liquidation in time, the depositor will share the accumulated debt risk. The platform provides sufficient liquidation benefits and a complete liquidation mechanism to encourage the liquidator to complete the liquidation in time to avoid this risk, so there is no need to worry. The borrower mainly bears the risk of being liquidated, but it can be avoided as long as the position is reasonably controlled. Note: There is no fixed repayment period for loans.
We are currently focusing on safety and experience, constantly testing and optimizing the follow-up functions, hoping to bring users a better product experience, and ensuring the safety of user assets is the top priority of Archimedes. In addition, we will start Dao governance in the follow-up, actively listen to the opinions and suggestions of community members, and continue to improve and optimize.
The additional funds can be re-determined to open leveraged mining based on user needs.
