Arrakis Finance Polygon has one mission: to become a web3 liquidity layer, allowing LPs and tokenized projects to optimize their DEX liquidity across multiple blockchains in a seamless and automated way.
About Arrakis Finance Polygon
Arrakis at its core is a protocol that specializes in concentrated and proactive liquidity management. It solves problems by creating a curated marketplace for new tokenized LP strategies that promote high liquidity and optimize LP earnings.
Arrakis DAO, which oversees this protocol, is the focal point for projects, seeking to aggregate and load liquidity, and the most attractive place for market maker strategists to develop strategies for providing liquidity.
By abstracting liquidity management and channeling it into advanced market creation strategies, Arrakis Finance Polygon becomes a very useful primitive. 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.
Apart from this, Arrakis opens the door to a new area of decentralized market creation with the potential for tokenized products such as:
| 1. | Automatically hedged LP positions. |
| 2. | Complex multipositions on concentrated AMMs. |
| 3. | Cross-AMM positions. |
| 4. | LP positions, combined with lending/borrowing or option markets. |
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. To achieve these goals in a truly permissionless and decentralized manner, Arrakis is introducing the $SPICE token, which aims to add transparent governance and new incentive mechanisms to the Arrakis protocol.
Working with a token
The Arrakis DAO coordinates the management of its tokenized strategies with a curated list of automated strategies from which the protocol will charge a fee of 25% of fees, generated from all liquidity under management as income from the protocol. In turn, projects receive optimized liquidity without management overhead and access to the issue of liquidity indicators in the form of $SPICE.
Simultaneously doubling the bootstrap mechanism to allocate authority to control the Arrakis protocol by voting blocking $SPICE for non-translatable $xSPICE. The $SPICE and $xSPICE tokenomics are inspired by the rapidly popular ve Curve design, with a number of important differences, optimized to fit and expand Arrakis' future product fleet. At the birth of Arrakis and the $SPICE economy, an initial distribution of $SPICE will be there, including an airdrop, covering several key demographics.