It’s been 4 weeks since ARC went live on main-net and it’s been amazing to see the response received. A few key milestones we managed to achieve as a project:
- We had over 650 registered for the first tranche of Know-Your-Farmer and an additional 1505 for the second tranche! 2,000 initial users to play and experiment around with is thrilling to see.
- We got over $1.8m worth of LINK locked up in the first 24 hours and approximately $300,000 of debt created (LINKUSD).
- Started distributing ARC to the first tranche of KYF v1 users. The race is still on to see which user will be the first to farm one whole ARC token.
We’d like to thank each and every one of you that’s been a part of ARC so far.
The last reward pool for KYF v1 users was an experimental contract which enforced a slashing condition for those that tried to game in the system. Once the rewards were finished it turned out users could still be slashed if they exited the system by paying back all of their debt. As a result some users lost all their pending ARC tokens.
We made the decision to ensure that users who lost ARC tokens will be reimbursed and users who performed slashes could retain their rewards as well. As a community we shouldn’t penalise those who help find faults with the system, provided no harm is done to user funds. In this case no capital was at risk and the findings have helped us iterate on the new reward contract version.
If you are currently staking in this pool, it is safe to unstake your BPT tokens now.
While the ARC token is still non-transferable, we really want to hear from you, and encourage community input in decision making. A great suggestion from the community was to allow KYF users to start signalling on certain decisions (shoutout to Nick from UMA for suggesting this!).
We’ve deployed a KYF Token which does exactly this. Check out the ARC Snapshot page https://snapshot.page/#/arckyf and make your vote count!
Here’s the address of the KYF Token: https://etherscan.io/address/0xD85e2772912213e0c584d80B2694c79D6a09E39A
Right now, if you’re a verified KYF Tranche 1 user, your balance will show as 1. Once we roll out ARC to KYF Tranche 2 users, your balance will show up as 1 however it will remain as 0 for now. This ERC20 infrastructure will allow us to vote off-chain where 1 KYF user = 1 vote. We’re excited to start using this to get all you more involved with the decision making process of the protocol.
New Curve Pool
Last week, the peg restoration vote was successfully voted and executed on (https://snapshot.page/#/arckyf/proposal/QmaSGxr7sxVkAwQGqadpcGgemAAuj8k6Ph3JHCcRX1wpGq).
As a result, 11,210 LINKUSD were minted with the admin key then sold directly on Balancer. Coupled with the finishing of the reward pool the price of LINKUSD is currently at $1.05. The transaction hashes for the above are:
- Mint tx: https://etherscan.io/tx/0x3b9abaf5246d9d623179dbac6df77e15ff32320c2fe73fa6f5bfa0f3341c93f9
- Sell tx 1: https://etherscan.io/tx/0x403b4cee71b526d09ace98be2e84fb5c81ee4b99e433f8a8624642cae9e6cf07
- Sell tx 2: https://etherscan.io/tx/0x5a74ccb29464a17872326c4b8e79b6ad722d0995ce10a8bb50ec10653c6a5bcd
All the USDC earned from these transactions will be kept until a new proposal is made to buy back the LINKUSD and distribute profits back to ARC holders.
While we’re close the peg being restored we fundamental believe that the problem with the peg is more so due to the constant sum algorithm of Balancer (x * y = k) curve since a $20,000 imbalance can throw the peg off to $1.20. Instead we’re integrating with Curve which uses a different algorithm optimised around stable coins specifically. We’ll be stopping the incentivization of the Balancer pool and migrating over to Curve to test this out.
Once the Curve pool is live we’ll begin experimenting with the peg restoration based on the updated data available. The Curve team is currently auditing their meta pools which ARC will be using and should be audited by the end of this week.
Unlocking the next level
We’re really looking forward to unlocking KYF v2. For now, we’ll be doing another 2 day reward pool for KYF v1 users, so we can test out the new Curve pool and staking rewards contract.
If everything goes to plan, we’ll put out a Snapshot poll to ask KYF v1 users if they believe that ARC is ready for the next level with KYF v2 users.
We’re aiming to achieve this by the end of the week but please note that this is subject to a successful integration with Curve. We, just like you, want to get to the next level, but we need to make sure the protocol is safe, secure and functioning at 100% before we get there.
We really appreciate the feedback that we received from you all last week - that the flow of information was too hard to keep up with and it caused some confusion.
In the interests of making sure everyone’s on the same page, we put out a Snapshot poll proposing times to host a livestream where Kerman would spend 20 minutes providing some project updates and another 20 minutes for anyone to ask questions they’d like to know about ARC.
The results from https://snapshot.page/#/arckyf/proposal/QmUQhp9jXjoMhtqeEWu8fAQhXeVsT9ihr8P3YSJGTEJcuV were anchored around 9:00pm UTC and 9:00am UTC indicating preferences for timezones on both sides of the planet. In order to make sure the livestreams work for everyone, we’ll be doing alternating times each week on Monday. The first livestream will be this upcoming Tuesday at 9:00pm UTC // 7:00am Sydney Time.
Here’s the link: https://www.youtube.com/watch?v=t8vtURqXjAA
We’re thrilled to have investor and advisor Reuben Bramanathan take a more active role in ARC. Reuben has been in crypto since 2013. He was an early employee at Coinbase, where he worked as both a lawyer and a product manager. He currently advises a number of projects in DeFi including dYdX, Opyn, Zora, and The LAO, and is a co-founder of Fair Launch Capital.
We’re looking forward to having Reuben working closely with the team on product, strategy, regulatory, and operations
Thank you, ARC Angels!
Most importantly, thank you for being part of ARC from the very beginning.
We’re fundamentally committed to making ARC self governing and community owned. Ultimately, the core team’s involvement in ARC will be as an equal ecosystem contributor alongside our world class ARC community. We’re working making this happen as soon as possible
Our first month has been a great start and we’re confident that we’ll grow and thrive as a community, together.