Progress is made by lazy men looking for easier ways to do things.
― Robert A. Heinlein
Though I’ve never considered myself lazy, I admit that the yield farming race can be exhausting. With numerous opportunities in the modern DeFi world, I often find myself fatigued, trying to profit. Managing multiple wallets and navigating bridges is increasingly complex and time-consuming.
Hence, in this article, I aim to introduce the elegant solution provided by Arable Protocol, striving to simplify our lives.
Origins of Arable Protocol
Arable Protocol positions itself as the first decentralized synthetic farming protocol. Its distinctive design amalgamates multichain yield farming and trading in one place. It’s akin to a vast shopping center where all you need is available under one roof, eliminating the need to rush across the city from store to store.
According to Arable’s Twitter, the team commenced work on the project in August 2021. Their objective was to establish a unified platform for cross-chain farming, negating the necessity for multiple wallets, bridges, or incurring slippage fees. It sounds like an ideal solution, doesn’t it?
What distinguishes Arable Protocol is its accessibility and convenience for all. Its focus is on fostering a superior environment for earning through crypto, which is quite appealing.
The Mechanics Behind Arable Protocol
Arable Protocol operates on the concept of synthetic assets, often referred to as “synths.”
Synths are derivatives of native cryptocurrencies pegged to their prices. Presently, the platform hosts 32 synthetic coins:
arBTC, arETH, arBNB, arXRP, arSOL, arAVAX, arMATIC, arATOM, arCRO, arADA, arDOGE, arDOT, arTRX, arFIL, arICP, arALGO, arNEAR, arAXS, arTHETA, arAPE, arMANA, arFTT, arAAVE, arLINK, arUNI, arRUNE, arONE, arOSMO, arFTM, arKDA, arKAVA, arGLMR
Additionally, there’s Arable’s stable asset arUSD, pegged to the U.S. Dollar’s price.
arUSD can be minted in an over-collateralized manner directly on the Arable platform or purchased on the Pangolin DEX. It serves as the entry point to the Arable synthetic ecosystem, requiring users to exchange arUSD for other synths at the Arable DEX.
What’s intriguing about arUSD is its inherent utility. Arable incentivizes retaining capital within the protocol, stimulating activity on the Arable DEX during synth trades.
Where to Find Rewards?
Like the secret ingredient in a chef’s signature dish, Arable possesses its native token, ACRE.
ACRE functions as a fee token for protocol usage, a reward distributed to liquidity miners, stakers, validators, and a governance token for the Arable protocol.
Users can purchase ACRE, provide it as collateral to mint arUSD, and start earning ACRE rewards by offering arUSD liquidity. This makes them minters, playing a pivotal role in Arable’s synthetic ecosystem. Minters also receive a share of transaction fees when synths are swapped at the Arable DEX. Earnings from fees are proportional to the arUSD minted and paid out in arUSD. But that’s not all.
To gain more rewards, minters can provide arUSD liquidity on the Pangolin DEX, earning transaction fees from users buying arUSD. Moreover, the LP tokens from Pangolin can be staked on the Arable platform to earn additional ACRE.
Another avenue for ACRE rewards is traditional staking. Similar to various PoS protocols, users can lock up ACRE to provide economic security for Arable. It’s noteworthy that stakers can opt for general staking or delegated staking. The difference lies in direct ACRE token locking with the Arable Protocol for general staking, while delegated staking involves a validator’s participation. Delegated staking offers a higher APR but entails a risk of slashing if validators misbehave.
Finally, users can benefit from synthetic trading and farming by exchanging arUSD for synths. Arable stands out by offering synthetic versions not only of cryptocurrencies but also synthetic farms on their native chains. These synthetic farms mirror the APR of their counterparts on L1s and offer equivalent rewards in synths, exchangeable for any desired assets. This embodies the primary goal of the Arable Protocol — enabling users to profit from multiple crypto assets on a single chain.
Synergize Strategies and Earn with Arable
It’s astonishing how effortless multichain farming becomes: no swapping fees, no bridges, no added efforts! The possibility of combining yield farming strategies and swiftly transitioning between farms is particularly enticing.
In conclusion, Arable Protocol stands as a promising project worth monitoring. Stay updated by following it on Twitter.
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