Arkadiko — Hello World 👋

Why Arkadiko?

A majority of all DeFi is currently built on top of Ethereum. While we believe Ethereum and its ecosystem have done amazing things (think Maker, Aave, Curve, Compound, Synthetix, …), we also believe that such solutions could thrive even more under a Bitcoin standard, scaled by the Stacks blockchain.

  • Stake DIKO 🍆 — the Arkadiko governance token. There will be 100 million DIKO in existence in the first five years, of which 50 million that can be earned by the ecosystem through staking. In the first 12 months, stakers can earn 25 million DIKO, where we are targeting APYs of 50% and more for early users. Farmers galore!
  • To incentivise xUSD creation in the early days, Arkadiko vaults will be eligible for some tasty DIKO as well, resulting in double incentives (mint xUSD -> receive DIKO -> stake DIKO -> receive more DIKO).
  • Lend or borrow bitcoin without bitcoin ever leaving the Bitcoin blockchain. The borrower deposits xUSD collateral (say 200% LTV) in the Arkadiko smart contract, which will act as an escrow. When the escrow signals that the xUSD arrived and is locked up, the lender can safely send the bitcoin to the borrower and signal to the escrow that the loan was successfully initiated by posting the TX ID of the bitcoin transaction. The escrow keeps track of the state in its smart contract. Should the price of bitcoin ever go below an agreed upon LTV, the xUSD collateral is simply released to the lender as a liquidation occurs. In normal circumstances, the bitcoin will be paid back by a certain block height, and the escrow releases the xUSD collateral back to the borrower, minus the borrowing cost. All of this is possible since Clarity, the Stacks smart contract language, can read Bitcoin state. One of the many advantages of this amazing little language.

What’s Next?

We can’t wait to launch Arkadiko and boost applications leveraging stablecoins and lending on Stacks! In the next few weeks, we will release information regarding the testnet launch, our amazing team, the platform, its usage, technical details, how it works, protocol governance, tokenomics details and community involvement opportunities.

Get In Touch

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