The assumption “Traders always lose” is a widely recognized theory today? Many projects are applying this assumption to design their operating mechanisms. Today let’s also explore one such project Aark Digital.
To better understand Aark Digital, people can refer to some of the articles below:
- What is Arbitrum (ARB)? Arbitrum Cryptocurrency Overview
- What is GMX (GMX)? Overview of GMX Cryptocurrency
- What is Vertex (VRTX)? Overview of Vertex Protocol Cryptocurrency
Overview of Aark Digital
What is Aark Digital?
Aark Digital is a derivatives DEX, built on Layer 2 Arbitrum. Aark Digital provides users with more than 50 different trading pairs with deep liquidity, allowing users to trade as easily and efficiently as when used on CEX exchanges. The project also provides users with a leverage ratio of up to 20x to help users maximize profits when the market fluctuates.
Mechanism of action
Basically, Aark is a DEX that operates on a “peer to pool” model. There are two main components participating in the project: Trader and Liquidity Provider.
- Trader: When joining Aark Digital, you can participate in trading with more than 50 different trading pairs, the project allows you to use Cross margin to execute Long Short with 20x leverage (Cross margin is different from Isolated Margin is forms of margin borrowing, in which Cross margin is when you use your entire account to make margin. If your transaction is liquidated, the entire amount in all your accounts will be No more. For Isolate Margin, it is a form of margin loan where only one of your collateral accounts will be used if liquidated, the remaining accounts will not be affected)
- Liquidity Provider: These are liquidity participants in liquidity pools. The project allows LPs to have 2 ways to create liquidity: Add liquidity like other projects and add liquidity with leverage. With leveraged liquidity provision, LPs will deposit their assets into the project with a maximum leverage of 5x. In addition, the project also allows LPs to provide one-sided liquidity with just one token such as: stETH, BTC, USDC and some other tokens. When providing liquidity, LPs will receive trading fees, Funding Fees and PnL from traders.
With Aark Digital, it follows the peer to pool mechanism, meaning traders and liquidity pools are two opposing sides. If the trader makes a losing trade, then the liquidity pool size increases, and the LP receives a profit. If traders win, the liquidity pool size will decrease, LP will suffer losses.
The project also develops a new type of AMM, PMM. PMM reflects liquidity from the order books of leading CEXs such as OKX and Binance. According to the project, this will reduce the impact on prices for traders to a low range like CEXs, so they can create large volume orders without fear of affecting the price too much, this helps the project become The exchange has the highest liquidity among DEXs today.
Project Development Roadmap
Update…
Core Team
Update…
Investor
The project announced that it has received investment from Seed round funds led by Delphi Digital and participation from: OKX Venture, Big Brand Holdings, KeyRock, however the amount has not yet been announced.
Tokenomics
Update…
Exchanges
Update…
Aark Digital Project Information Channel
- Website: https://aark.digital/
- Twitter: https://twitter.com/aark_digital
- Discord: https://discord.gg/aarkdigital
- Medium:
Summary
Aark Digital is a project invested in by many famous names such as OKX Venture and Delphi Digital, which has proven the long-term potential of the project. Arbitrum is also the most developed ecosystem among Layer 2 today. Currently, the project is also organizing an experience program to receive airdrops in the future, don’t miss this opportunity.