<aside> 📌 Arrayfi is an omni-chain DeFi protocol designed to revolutionize app-oriented decentralized asset management. It aims to build a next-generation algorithmic currency system inspired by the early Algorithmic Stablecoin projects. With Arrayfi, we aim to redefine the potential of algorithmic currency, simplify application interaction, and allow Web3 to minimize volatility while generating yield. Our team is committed to achieving endless growth, market-driven progress, and a seamless and smooth user experience.
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<aside> 💁♀️ Why do we build?
DeFi applications can be broadly categorized into three layers,
Base layer: The underlying blockchain network that DeFi applications are built on; Protocol layer: The layer of decentralized protocols that provide the building blocks for DeFi applications; Application layer: The layer of user-facing DeFi applications built on top of the base and protocol layers.
Since the DeFi 2.0 era, the layer order has shifted into: Application Layer > Base Layer > Protocol Layer.
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<aside> ⚖️ How do we objectively assess the pros / cons and the potentials of a DeFi protocol?
When assessing the potentials of a DeFi protocol, it is vital to consider the factors beyond Total Value Locked (TVL) and capital growth rate. While these metrics are obviously significant indicators of a protocol's value, they do not necessarily secure success in the long run.
As the market evolves, successful DeFi protocols must integrate with the application layer, as metrics such as traffic and adoption rate become increasingly important. To achieve successes, a DeFi protocol must prioritize high TVL and TPS, coupled with strong user inflow and adoption rate.
At the end of the day, an exceptional DeFi protocol has to be one that caters real demands for its users and adds real value to the ecosystem.
A successful DeFi protocol = TVL (Total Value Locked) ⬆️ + Capital Growth Rate ⬆️ + User Traffic ⬆️ + Adoption Growth Rate ⬆️
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<aside> 🆙 Improvements made to Mint and Swap
Mint and Swap are two basic functions in Arrayfi’s ecosystem. Mint represents production and Swap represents exchange. While traditional DeFi protocols intend to create a competitive marketplace where users are motivated to pursue their own profits, Arrayfi is application-focused protocol which promotes positive feedback loops by directing projects’ production to the DEGA platform. This dynamic equilibrium ensures optimal capital efficiency.
✅ MRTpv = MRSpv = Dp/Dv
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<aside> 3️⃣ Arrayfi’s Layer 3: Application-Specific Layer
To deliver a stronger scalability, Arrayfi is developing a Layer 3 - a customized application-specific layer, to provide specific services required for blockchain applications, such as composability, interoperability, better management of technology stacks, and privacy.
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<aside> 💡 Protocol Highlights - 4S's
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Super Stablecoin
Arrayfi employs an algorithmic approach to construct an ultra-stablecoin, without relying on other stablecoins as a peg. The $ARA token has an unbreakable floor price, thereby eliminating the risk of liquidation. The market price of $ARA has no max. cap.
Savings
An innovative asset management technique implemented through the utilization of an AI-powered algorithm that regulates liquidity on the blockchain.
Safety
All contracts have undergone stress testings and are audited by a reputable auditing firm, ensuring security and stability before the mainnet launch.
Self-Innovation
In order to foster composability within applications, the team devised a novel AI algorithm, with intricate codes and contract call logics.
<aside> 💭 Innovative Tokenomics
****Array has made a significant innovation with its tokenomics, deviating from the traditional governance tokenomics and providing more practical value to the protocol's dual tokens - $ARA and $USDR.
Initial price of $ARA & $USDR = $1
Fair launch mechanism:
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<aside> 🥽 Dive deep into $ARA - the bloodline token of Arrayfi’s Ecosystem
$ARA is a fully decentralized reserve token designed to store wealth within the DeFi ecosystem, striking a balance between venture investing and stability.
To ensure an ultra-stable tokenomics, Arrayfi adopts a dual-price model consisting of a floor price and market price (with an initial price of $1) to secure a fairer and more community-friendly economy.
More specifically, Arrayfi acquires 90% of the funds and deposit them into the liquidity pool, waiting for the smart repurchase; the remaining 10% will be used to provide the initial liquidity for USDT/ARA trading pair with ARA (from the incremental issue), to provide a price discovery of $ARA’s initial price.
In addition, Arrayfi has introduced an AI-powered algorithm to manage the issuance and buy-backs of $ARA. When the AI-powered smart contract detects that the amount of staked $ARA growing much larger than the number of $ARA in the liquidity pool, the ratio will be automatically adjusted to remain the circulating balance (the number of staked $ARA vs. the amount of $ARA in the LP) The smart contract will then inject liquidity into the pool, which is, issuing additional $ARA. After the issuance, $ARA will be immediately sold in the secondary market, of which 10% of USDT will be controlled by Arrayfi’s Treasury, and the remaining 90% will be transferred into the buy-back contract in preparation of any buyback events to avoid inflation.
When the AI-powered smart contract finds that the price of ARA drops close to its lowest price, it will then trigger buyback actions. The algorithm will automatically set the price and quantity of $ARA that are being bought back. The smart contract will transfer the equivalent amount of USDT in the locked contract to buy $ARA. The $ARA bought back will then be transferred to the Black Hole address (0x0000000000000000000000000000000000000000) and gets burned permanently. Buyback events will reduce ARA's circulating supply and cause a rise in price.
The above mechanism ensures a healthy circulation of Arrayfi’s assets and promote overall ecological and economic balance in the system.
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