Arkadiko 2.0 Upgrade week
Hello Arkadians
Big week coming up ! Arkadiko 2.0, the next iteration of your favourite DeFi platform is set to launch this week. Let’s first recap what exactly the 2.0 upgrade means for Arkadiko (and you). We also announce some important details related to the migration of the existing data. In case you missed our teaser video for the upgrade, you can watch it below:
Arkadiko 2.0
Arkadiko 2.0 is the next-generation iteration of Arkadiko, introducing several improvements to the core protocol. It introduces several protocol enhancements such as a redemption mechanism for USDA combined with new collateral types such as stSTX and sBTC.
Redemptions are a major new addition to Arkadiko and help keep USDA hard-pegged to 1 USD. We’ve written an extensive explanation in a previous blog post. In short, a redemption is the act of using USDA to pay off the debt of an open Arkadiko Vault and receiving equivalent STX or xBTC tokens in return.
This week’s timeline
As this blog post is released, the migration to the new 2.0 contracts is underway. After verifying a succesful migration, the front-end will also be adjusted to reflect the new underlying contracts. Some functionality of Arkadiko is paused during this process. Expect all features to become available again during the coming days.
In terms of what users can expect after the completed migration, we’ll closely monitor USDA price and will adjust the redemption fee slowly towards our target of 0.5%.
Some volatility is to be expected as the market tries to reach an equilibrium amongst the regular STX-USD volatility on centralised exchanges.
The migration attempted today is probably one of the most complex and ambitious smart contract migrations ever seen on Stacks.
We hope you look forward to Arkadiko 2.0 together with us. May it bring you prosperity as you go about your business in the streets of Stacks.
