It’s been two weeks since we announced Know-Your-Farmer to get a set of beta testers. Not only did we get that, but a super engaged community of users who are excited to try out ARC and start minting synthetic assets.
Today we’re excited to announce the launch of the ARC 1.0 Beta!
Let’s talk through what the goals for this beta are:
- Ensure that the contracts and their respective deployments don’t have any obvious flaws or vulnerabilities. While we do use unit tests throughout our code and successfully finished our audit with Quantstamp, we recognise that the best security is simply being live on-chain with plenty of eyes to look over contracts. This beta aims to let users play around with the system with a guarded launch. Audit report available at https://github.com/arcxgame/audits
- Make sure the ARCx user experience is as seamless as possible by collecting feedback so that we may iron out any bugs or annoyances that exist on the front-end. To this end, we encourage users to share their feedback the team
- Allow community members to familiarize themselves with the ARCx system, beginning with minting synthetic assets, and ending with staking BPT to earn ARC. Unlike other yield farming schemes which are relatively simple, ARC yield farming is quite complex and, therefore, carries greater risks. Ensuring that we have sufficient educational resources and helpful community “super angels” will be a top priority. There will also be bounties for those who create content to help people understand aspects of ARC.
- Setting the maximum number of ARCX tokens to be minted between September 2020 - September 2021 at 10,000. This can create some sort of upper limit for what holders can expect the network to mint without having to figure out exact details just yet. In the case that more 10,000 are required then the community will be consulted.
- We’d like to ensure flexibility at a per-week level by allocating 200 ARCX tokens to start off with. We'll be adjusting reward amounts per week based on the behaviours/liquidity we'd like to incentivize or disincentivize.
- Post September 2021, the monetary policy is either set to a variable issuance schedule or a fixed % to keep paying for certain liquidity requirements. This will also be determined based on the factors at play in the future. Further details are at the bottom of this article.
Goals & Logistics
Okay, so what’s the entire flow of things we’d like to test out? Here’s the list:
- Get your LINK, deposit it into ARC and get back LINKUSD at https://arcx.money
- If the price of LINK drops, your LINKUSD position gets partially liquidated (15% penalty)
- Borrow more debt against your position successfully
- Repay your debt in a position to get back your collateral
- Deposit your LINKUSD inside Balancer with some USDC to get BPT tokens at https://pools.balancer.exchange/#/pool/0x5dcb5baa17a5af85aaec5d2b422cab13c0141bce/
- Deposit your BPT on the ARC staking page at https://arcx.money to start earning GRAEBERS in real time. For context, 1,000,000 GRAEBERs = 1 ARCX. ARCX tokens will not be claimable for 1-3 months.
Logistical details you should know about:
- The maximum amount of LINKUSD that can be minted in the entire system at the moment is 2,000,0000. Verifiable at: https://etherscan.io/address/0x94F40fD4018586AaFb8A6AD95441e0b58cc4c058#readContract. This will be increased as we gain confidence in the system.
- 20 BPT Tokens (0x5dcb5baa17a5af85aaec5d2b422cab13c0141b) consists of 1 of USDC and 1 LINKUSD. There is a staking hard cap of 20,000 BPT (1000 LINKUSD + 1000 USDC = 20,000 BPT) tokens that each KYFV1 verified address can stake inside the StakingRewards contract: https://etherscan.io/address/0xd1902581868163BEf61776cfD27228EE5074be8F#code
- The staking hard cap and the system hard cap are not the same contracts. It’s possible to mint as much LINKUSD you’d like but only a portion of that will be available for staking to earn ARC.
- KYF v1 users (contract address: https://etherscan.io/address/0x1f10ff148a0ad63a57f98530ab472568e90a72c5) will be the only ones eligible to participate in this beta
- There will be a total of 35 ARC tokens distributed over the course of 1 week to test out the beta. Once this beta finishes rewards will remain in the contract until they are claimable. You will be able to pull out your BPT tokens from the contract and still retain your rewards.
- After the week of KYFv1 farming, we will open farming up to both KYF v1 and KYF v2 registrants.
Other address you might need/want to check out:
- KYF V2 (Tranche 1) https://etherscan.io/address/0x1f10ff148a0ad63a57f98530ab472568e90a72c5
- ARCx Token https://etherscan.io/address/0xed30dd7e50edf3581ad970efc5d9379ce2614adb
- ARC DAO https://etherscan.io/address/0x1DEBBC50322150EB44DE3b663d5faA89c12b07ff
- Synth Registry https://etherscan.io/address/0x372a4D34e9E9d96656F101aFf06a4a455396C974
- LINKUSD-Proxy https://etherscan.io/address/0x5568Df89AF6Bc835B876fDc3B2d44ef63530e419
- LINKUSD-Oracle https://etherscan.io/address/0xeffd9768a337950cdc883682dc08583d4a3fe596
- LINKUSD-CoreV1 https://etherscan.io/address/0x08db418a5234337d76c78ccf630658d4e328fc69
- LINKUSD-SyntheticToken https://etherscan.io/address/0x0E2EC54fC0B509F445631Bf4b91AB8168230C752
- LINKUSD-StateV1 https://etherscan.io/address/0x94F40fD4018586AaFb8A6AD95441e0b58cc4c058
- KYF-Tranche 1 (StakingRewardsCapped) https://etherscan.io/address/0xd1902581868163BEf61776cfD27228EE5074be8F
- Balancer Pool Token (LINKUSD/USDC) https://etherscan.io/address/0x5dcb5baa17a5af85aaec5d2b422cab13c0141bce
Risks you should also know about:
- This is the first time these smart contracts are going live on main-net and may still have some inherent risk in using them and could result in you losing all your money. Please only put as much as you can afford to lose.
- Setting your collateralization ratio (also known as the c-ratio) too low may result in liquidations. Specifically, if the price of LINK drops and pushes your c-ratio below 350%, then you can be partially liquidated. So it is better to err on the side of caution and maintain a c-ratio of > 525%.
- There are also risks arising from external integrations such as the Balancer pool and Chainlink oracles. Please make sure you understand the respective systems and are comfortable with how they work.
- Lastly, please ensure that you understand how debt creation or management works to avoid unnecessary losses. Read as much as you can before playing around with the system. Do not hesitate to ask questions.
So what’s next for ARC? Here’s the rough roadmap at the moment:
- Bootstrap liquidity of a single synthetic stablecoin and maintain a USD peg with token rewards.
- Once #1 is achieved, do the same with 2 assets to have 3 synthetic stablecoins with liquidity.
- Combine the 3 synthetic stable coins to create an ARC Stable Coin and build integrations
As you can see on the list, the network will gradually grow in scope and asset under management. However what we don't know at this point in time are the following factors:
- What will be the macro crypto market sentiment for the next year
- What will ARC's valuation be as it achieves various milestones
- Which products will be useful to the network
- Which products will require more ARC tokens as a subsidy to succeed
- How will ARC itself capture more of the value it creates and channelling it effectively back to token holders
- What behaviours outside of liquidity will the protocol need to incentivise?
There’s quite a lot to take in for this piece so I’ll leave it there for now. I’m really excited to get the game started with you all. Once again if you have any questions, jump in Discord and a game moderator or super angel will help you out.