Arrakis Finance — a web3 liquidity layer that essentially acts as a decentralized market creation platform, allowing projects to create deep liquidity for their tokens on decentralized exchanges.
About Arrakis Finance
Arrakis has a mission: to become the web3 liquidity layer, allowing LPs and tokenized projects to optimize their DEX liquidity across multiple blockchains in a seamless and automated way.
Arrakis has posted exceptional growth in every conceivable way. The project has about $745 million in TVL in its LP vaults, which is roughly 19% of all Uniswap v3 liquidity. This makes it the largest LP on Uniswap v3 to date, all without any liquidity mining incentives of its own.
In Arrakis vaults, passive storage of the LP ERC20 token automatically exposes LP to the underlying automated strategy. This encourages massive innovation in liquidity aggregation, such as those, seen on Uniswap v2 style AMMs (liquidity mining, protocol-owned liquidity, LP tokens as collateral), in more efficient but also more complex markets such as Uniswap v3.
In addition, Arrakis opens the door to a new area of decentralized market creation with the potential for tokenized products such as:
| 1. | Liquidity as a service to strategy. |
| 2. | Automatically hedged LP positions. |
| 3. | Cross-AMM positions. |
| 4. | LP positions, combined with lending/borrowing or option markets. |
| 5. | Cross-chain strategies. |
The overall goal of the protocol - to integrate, develop and support best-in-class DEX liquidity provisioning strategies that are open to all and easily compatible with the rest of DeFi. At the same time, Arrakis provides deeper and more reliable liquidity for many projects and use cases in the web3 environment.
SPICE token
Arrakis DAO coordinates the management of its tokenized strategies with a curated list of automated strategies. The protocol will take a fee of 25% of fees, generated from all liquidity under management, as revenue from the protocol.
The $SPICE and $xSPICE tokenomics are inspired by the wildly popular ve Curve design, with a number of important differences. They are optimized to fit and expand Arrakis' future product fleet. At the birth of Arrakis and the $SPICE economy, there is an initial distribution of $SPICE, including an airdrop, covering several key demographics.