Arkadiko <> Lydian Partnership (🤝,🤝)
We are excited to announce a partnership between Arkadiko and Lydian DAO, an upcoming DeFi-project on Stacks which will bring utility to our stablecoin USDA.
Lydian DAO implements the recent paradigm of Protocol Owned Liquidity to create a community-governed farming organization that will capture yield farming opportunities within the Stacks ecosystem. You can read more about them in their announcement post.
Arkadiko was the initial pioneer for DeFi on Stacks. We’ve decided to build a universal building block for other protocols to use and extend. A fully collateralised stablecoin called USDA came into existence. Other protocols can now rely on a stablecoin token to use for their own purpose.
The team behind Lydian DAO approached Arkadiko a few months ago as they identified the Arkadiko community as the primary meeting place for Stacks DeFi enthousiasts. Arkadiko’s core contributors were excited at another DeFi protocol on Stacks that would use USDA and have given their full support to the team of Lydian. Over the past weeks, Arkadiko has collaborated to solidify the Lydian code base by providing feedback and code review. We’ve had lengthy discussions with the Lydian team on how to approach launching a protocol like this and have developed a lot of trust in the execution potential of this anonymous team.
The synergy between Arkadiko and a DAO like Lydian should not be underestimated. We leave it up to the Lydian team to announce the full inner workings of their product and their plans for the future. What we can reveal is that USDA will play a primary role in the building of a farming treasury which can then be accessed by Lydian to deploy capital in the Stacks ecosystem. This means that a new sink for USDA has been created. This will likely create some demand for USDA in the short term. Depending on which strategy Lydian wants to follow with their farming treasury, it could also bring extra liquidity to Arkadiko.
Lydian also plans to create initial liquidity for their token through a pool on Arkadiko Swap. They will take the initiative to bring forward a governance vote that enables this process. Expect more details on this through Lydians own social channels.
All this support by Arkadiko has led to Lydian allocating a share of their token supply to the Arkadiko treasury. As a gesture towards our supporters who have been staking in the Security Module and have been providing DIKO liquidity on Arkadiko Swap, we will be airdropping the majority of our allocation towards these users. We will further refine this airdrop process in the weeks leading up to the Lydian launch.
We think the advent of protocols like Lydian is a great second step in the evolution of DeFi on Stacks. We hope the Arkadiko community will lend its support to Lydian the same way they have done for Arkadiko. It is the combined contribution by all Arkadians that made Arkadiko what is today and we hope they can remain a powerhouse in upcoming developments on Stacks.
Go Lydian !