GateLive AMA Recap-Aark

Q1. What is Aark?

Aark is the only 1000x Perp DEX, powered by LST/LRT liquidity. Aark is designed to offer high-leverage trading with minimal gas fees/ and a seamless user experience through its Reflective Market Maker (RMM) model,/ which reflects liquidity depth of CEX’s orderbook to ensure abundant liquidity for traders.

Adding to that, Aark has an unique LP structure allowing single-sided LP for delta neutral yield/ and diverse choices of assets from RWAs to LRTs./ Basically, we designed this way for our users to earn multi-rewards by depositing PT-eETH(the yield bearing LRT asset), eETH to Aark LP.

Lastly, we are backed by the best, including Delphi Digital, HashKey Digital, OKX Ventures, Arrington, Morningstar, and more.

Q2. What kinds of unique features and structures does Aark offer to traders?

-1000x leverage is the key!
Aark offers maximum leverage up to 1000x which is never seen in the industry,/ a 1000x! If you feel lucky and wanna test your luck, Aark is your Vegas./ Stop by for maximum capital efficiency./ You might ask is this only for certain pairs?/ Aark users can open 1000x leveraged positions on trendy coins and even meme coins./ It also offers the lowest trading fee in the industry, which is 0.01%.

-RMM-based CEX liquidity
RMM (Reflective Market Maker) utilizes oracles to retrieve order book data from CEXs. For example, RMM retrieves data on the amount of liquidity in Binance’s ARB-PERP market and simulates the same liquidity on Aark’s pool. As a result, traders can experience a price impact/slippage the same as trading on Binance.

-Uncapped, scalable open interest
Aark leverages a unique mechanism called ‘Skewness Cap’ to safeguard LPs and enable the protocol to scale beyond other perps DEXs.

Implementing a cap on skewness rather than on open interest (OI)/ which is a strategic move that significantly increases OI scalability/ while maintaining the same low risk for the pool./ For instance, a perpl DEX with a $10m ETH OI cap without any skewness cap mechanism/ could easily have an 80:20 long-skewed OI balance, exposing the pool to a $6m short position./ However, with a $6m skewness cap, the protocol can scale the OI up to $100m,/ where the skewness is $6m ($53m long - $47m short)./ Although the pool is exposed to a $6m short position in both cases,/ the latter case only exposes 6% (6m/100m) of the OI,/ compared to 60% in the initial case.

By implementing a skewness cap,/ the protocol not only substantially decreases the directional risk the pool takes on,/ but also increases scalability by more than 10x./ This scalability is crucial for the future,/ where perp DEX volume is expected to match or surpass perp CEX’s.

-Wide collateral options
Aark users can open their positions with any whitelisted assets. With a diverse choice of collateral assets, traders can deploy various strategies. For instance, if they open ETH short positions by using stETH(stakedETH) as collateral, it allows them to stably earn rewards from Lido by holding stETH/ while hedging against a price volatility of ETH.

Q3. As a peer-to-pool Perp DEX, what kinds of distinction does the Aark Liquidity Pool have?

Aark’s LP Pool has numerous distinguishments from other Perp DEXs:
·Single Sided Yield
·Leveraged LP up to 5x
·Hyper diverse collateral

Let me dive a bit deeper into these:
-Single Sided LP
Aark allows users to deposit any single asset they want into AALP to earn yields. Users may also opt for multiple assets, in any ratio they desire.
Despite diverse user segments, legacy perp DEXs only allow LP in the form of baskets or a handful of stablecoins. In the case of baskets, not only are users forced exposure to unwanted assets, but also limited choices due to the inability for the basket to comprise too much diversity.
Currently, single-sided LP is limited to Vertex, Gains(limited to DAI) and Hyperliquid(limited to USDC). Gains is the only pool-DEX that has this differentiation but is limited to DAI. Aark is the sole single-sided LP with hyper-diversity.

-Leveraged LP
With 5x leveraged LP, LPs can earn 5x higher APR. The increased LP amount in turn provides more depth for traders. Also Leveraged LP is fee-free.

Traditional leveraged yield farming protocols, which borrow from lending pools, saw lending rates skyrocket. The Aark design removes uncertainty from cost.

Leveraged LP can be understood as an LP version of perpetuals:
·perpetual positions do not borrow;
·no borrowing fees or interest;
·positions are liquidated when positions fall below the MMR.

As such, the following can be said about leveraged LP:
·LP positions do not borrow capital;
·no borrowing fee or interests;
·liquidated when positions cross the MMR.

-Hyper diverse collateral
Aark allows for a hyper-diverse set of assets for liquidity provision. Beginning with basic assets such as ETH, ARB, stablecoins, Aark is the first perp DEX that allows for LST and RWA for LP, enabling dual yields. These account for around half of the entire DeFi TVL.

Innovation doesn’t stop here: Aark-itecture has the capability to broaden its horizons to include LP tokens. Uniswap v2 LP tokens, Uniswap v3 NFT positions, Curve USDC-USDT pool tokens, or any other tradable asset with liquidity can be added to the Aark pool to generate yields. This includes aUSD tokens and Aave USDC pool tokens, which users receive upon lending to Aave. These categories make up approximately half of the DeFi space.

This feature can also enable AARK-ETH Uniswap v2 LP token as collateral, strongly incentivizing users to provide liquidity for AARK on DEXs without separate token incentives.

Q4. What are the ongoing events at Aark that users must join to earn rewards?

There are 2 major events going on:
·$ARB Incentive Program
·Token Mining

$ARB Incentive Program:
Designed for both traders and liquidity providers, this program offers incentives for those who trade or add liquidity to the Aark platform. It’s from the 900k $ARB grant received from LTIPP. These are the limited-time events for only 10 more weeks to go.

-If you are an active trader, trade at Aark on Classic Mode. You can earn $ARB every week based on your weekly trading volume. 37,500 $ARB will be up for grabs and the pool is increasing every week. FYI, Classic Mode is a regular trading mode that offers up to 50x leverage.
-If you prefer stable income, provide liquidity by using your LST/LRT assets. You can earn $ARB based on your weekly collateral size. Weekly allocation is 10,500 $ARB.
-We’re also allocating 54k $ARB to campaigns on Galxe, Intract, QuestN, and TaskOn for the new users. If you have never traded on Aark before, this is a great chance to learn about Aark while earning $ARB rewards.

Token Mining:
Aark Token Mining is a ‘Trade to Earn’ event. You can earn esAARK based on your share of trading volume in Classic Mode and Moon Mode every week. esAARK can be used in two ways. The first is that it can be staked to earn rewards on a 1:1 basis with the standard $AARK. The second is that it can be vested for $AARK. During this period, esAARK will be converted into $AARK pro-rata per-block basis. esAARK is non-transferrable.

Q5. What’s the AARK utility and benefit of owning it?

$AARK is the governance and utility token of Aark. $AARK’s total supply is 1,000,000,000. $AARK holders are entitled to 3 major benefits within the Aark eco.

Governance:
AARK token holders have voting rights on key protocol decisions, giving them a say in the future development of the platform. For example, they can vote to influence over how to manage the protocol. This includes the followings:
-Building, deploying, and updating core Aark protocols.
-Optimizing parameters including liquidation threshold, eco allocation, rewards, fee structure, audits, and others for performance.
-Application of new products including options, NFT, listings, spot, and RWA as well as features including multichain and order book.
-Approving incentives for individuals and entities contributing to Aark’s growth and development.

Staking Rewards:
-AARK Holders can stake AARK tokens to earn 3 rewards:
-More $AARK.
-More esAARK can be staked to earn more staking rewards or vested to become real AARK over a year. However, depending on the staked amount, the vesting period can be shortened. You will also receive Multiplier Points(MP) at a fixed rate of 100% APR over a year. For example, if you stake 1000 AARK for a year, you will earn 1000 MP. Multiplier points can be staked for earning Stacking Rewards at the same rate as a regular AARK token. When you unstake AARK, a proportional amount of MP will be burnt. For instance, if you have staked 1000 AARK and earned 500 MP, then unstaking 200 AARK would result in the burning of 100 MP (200 / 1000 * 500). The burn will apply to the total amount of MP, including both staked and unstaked MP.

Trading Discounts: Users can stake AARK tokens to reduce trading fees, making it even more cost-effective for active traders.