Introduction
Arco Protocol (ARCO) is a cross-chain decentralized, transparent and non-custodial lending protocol on Aptos and Sui where users can participate as lenders or borrowers in isolated lending pools.
ARCO aims to build high-velocity markets for more traditional crypto-asset lending services, but with the goal of improving overall capital-efficiency across a wider range of Aptos-based and Sui-based assets.
Key Features
$ARC introduction:
- Lending and borrowing: Lenders can lend many different types of assets to earn interest. This interest comes from organic borrowers as well as leveraged yield farmers who borrow assets to increase their farming positions.
- Leveraged mining: Leveraged mining boasts a high APY due to increasing exposure through leverage. This is done by using your base assets as collateral to borrow more assets and using those assets to mine as well.
- Open governance: Fully unite the power of the community through governance incentives and expand the influence of the community.
- Yield farming: Provide incentives for stakers.
- Algo-Stablecoin (USDO): A scalable, yield-bearing coin that is value-pegged to the US Dollar and is backed by the ARCO treasury.
Tokenomics
$ARC is ARCO platform’s governance Token name. All users who take part in ARCO will receive some $ARC tokens as rewards. $ARC tokens will be operating on Aptos and Sui, adopting the MOVE protocol. $ARC tokens are crucial for maintaining ARCO operating systems, it is also the only credential for users to participate in verification projects.
Once the platform is stable, we plan to open up DAO (Decentralized Autonomous Organization) management model. Users will then be able to use $ARC token to raise issues and to call for a vote to adjust interest rates and lending parameters or support more crypto coins etc.
50% of the platform revenue is put into the repurchase and destruction pool. When the market price is lower than the three-day average price, the smart contract will trigger the execution of the repurchase and destruction operation.
$USDO introduction:
$USDO is a decentralized, collateral-backed stablecoin, pegged to the USD which is native to ARCO. Decisions related to $USDO will be settled via ARCO governance so some aspects of the stable are not fixed yet.
Users or borrowers will be able to mint $USDO on the ARCO protocol. They will first need to deposit collateral before they can mint $USDO. When a debt position is repaid or liquidated, the $USDO protocol will burn $USDO accordingly.