Rainbow Arc+

Archly Finance
7 min readApr 5, 2023
Photo by Shawna D’Amour on Unsplash

Rainbow Arc powered by the Telos Fuel program has gotten off to a great start. On February 23, we had 116 Arc holders, 62 veArc holders, and a 52.63% lock rate on Telos. As of April 5th, we now have 160 Arc holders, 114 veArc holder, and a 59.94% lock rate. That means our Arc holders grew over 37.9%, the veArc holder grew over 83.87%, and our lock rate grew almost 14%. There was a total of 219 veArc NFTs minted, i.e. Arc was locked. Over 100,000 TLOS was earned by our fellow Telosians that voted for the Base Incentives pairs over the first month of Rainbow Arc. During the month we received a tremendous amount of support from the Fuel, Marketing, and Exchanges & Liquidity teams at Telos. This truly shows what can happen when the projects and their network work together to benefit their shared community.

Archly also announced an expansion to seven new chains and the Rainbow Road, a forward looking way to scale data and assets across all chains. The expansion to Arbitrum Nova, Arbitrum One, BNB Chain, Fantom, Kava, Optimism, and Polygon resulted in over 580 veArc being airdropped! Since then the number of veArc holders on these networks has grown to 686 veArc, a 18.27% increase over Arbitrum Nova, Arbitrum One, BNB Chain, Fantom, Kava, Optimism, and Polygon. If you include the veArc holders on Telos, there is a total of 800 veArc holders across eight networks! The Archly team also grew a little bigger with the addition of three community managers and a new frontend developer who has already refreshed the Archly website! That’s a lot packed into a little over a month.

Now with the initial expansion behind us, we now turn our eyes towards building lasting relationships with other protocols and projects that will help us build the Rainbow Road and build liquidity for Archly. Don’t worry, there will be another article to go over updates for Rainbow Road along with announcing our new partners that will work with us to build out our vision.

Photo by Noelle Rebekah on Unsplash

During the last month we have had a few discussions with several potential partners to participate in the Archly Flywheel. But there has been little follow up to those discussions. Well that is going to change starting this month. To successfully power the Archly Flywheel, we need active participation from our liquidity providers, our veArc holders, and our projects. It’s best to think of Archly Flywheel as a three legged stool and each leg has an important part to play.

When Archly started, its primary goal was to build deep liquidity in the most cost effective way to benefit all participants. In other words, enable everyone to do more with less. This still remains our primary goal with one simple twist of letting everyone do this on any chain. So our primary goal has evolved to enable everyone to do more with less wherever they want. One of the nice attributes of Archly, among many, is that everyone has the ability to do more no matter where their path begins.

Do you want to start as a veArc holder?

Great!

Get some Arc, lock it for veArc, then use the veArc to vote for pools to earn fees (that are paid out in the tokens in the pool) and bribes. You can then take these fees and bribes, deposit them into a pool and become a liquidity provider to earn more Arc. Rinse and repeat.

Are you a liquidity wanting to grow your assets?

Great!

Create a pool or add your liquidity to an existing pool, earn Arc, lock it for veArc, then use the veArc to vote for pools to earn fees (that are paid out in the tokens in the pool) and bribes. You can then take these fees and bribes, deposit them in a pool and increase the assets you are using to provide liquidity to earn more Arc. Rinse and repeat.

Is your project looking to build liquidity?

Great!

Whitelist your project’s token (if it is not already whitelisted), create a pool with a gauge to be voted on, then create a bribe to encourage veArc holders to vote for your pool so that the liquidity providers earn Arc. If you want to protect your project’s liquidity from mercenary liquidity providers, then follow either of the two paths above for veArc holders or liquidity providers and build protocol owned liquidity (aka POL).

You’ll notice a reoccurring theme that starts to resonate loudly. All paths, no matter where you start, leads you on a familiar journey.

Rainbow Arc+

It is with this in mind that we set out to update the Rainbow Arc initiative and extend it to incorporate our multi-chain strategy. Due to this approach Archly needs to have an initiative that provides projects with a way to help them successfully onboard to the Archly Flywheel no matter which chain they choose to do so. In order to build a uniform experience that scales across all networks while continuing to provide the best of what each network has to offer our partners we announce Rainbow Arc+.

Just like the original Rainbow Arc, the goal is to help build Total Locked Value (TVL) on the chains that Archly covers by providing value to all participants in the Archly Flywheel. Rainbow Arc on Telos showed us that bribing is an extremely powerful tool to encourage locking Arc for veArc, voting for pools with that veArc, and drawing in liquidity for the pools. All the behaviors that makes a ve(3,3) exchange, like Archly, successful. But not all networks have programs or grants to provide tokens to use as bribes. That’s where Rainbow Arc+ steps in and accounts for this and addresses it by creating a new layer of incentives, veArc Incentives, to build upon that can scale across all chains and engage projects to participate in the Archly Flywheel. In short, veArc Incentives are designed to reward projects for creating bribes for their pools. It is a tiered system that provides veArc to projects that take an active part in the Archly Flywheel. Keeping with the spirit of doing more with less and Rainbow Arc on Telos, there will be only three tiers; veArc 10K, veArc 25K, and veArc 50K.

The way this system works is that for every week a project creates a bribe with a USD value of $500, $1000, $2000+ respectively, using any of the projects tokens, the network token, or a public goods token (BTC, ETH, USDC, USDT, …), they will receive a veArc worth 10K, 25K, 50K of Arc locked for 6 months, respectively. The projects can use the veArc received to do what they wish. For example, a project could create a bribe using $500 USD of ETH. The project would then receive a veArc worth 10K Arc locked for 6 months for that week. They could then decide to keep the veArc and vote for their pool to earn other bribes and fees from the pool. As an alternative, the project could request that the 10K veArc be split into 10 veArcs with 1K Arc locked for 6 months each to give away to their community. By allowing projects this freedom, they can choose to help grow their projects liquidity or pass the benefits to their communities while growing alongside Archly! And the best part is the project can be as creative as they want and Archly will help them make it happen!

The Base and Boost Incentives will carry over from Rainbow Arc and will be an additional layer of incentives on top of the veArc Incentives. These will be available on chains where Archly receives tokens from grants, incentives programs, or any other programs offered by networks where Archly receives tokens that can be used as incentives. Any tokens received will be split 67/33 (67% for Base Incentives and 33% for Boost Incentives). There are a few adjustments for the Boost Incentives. First, the bribes created by the project must use the projects tokens, the network token, or a public goods token (BTC, ETH, USDC, USDT, …). Second, when possible, if a Boost Incentive allocation for the week is not used, then it will be converted to a Base Incentive to be used to bribe more public good pools for the current or next epoch. Finally, for every $1 USD of bribes up to $2000 created, Archly will provide an additional $0.25 USD of bribes using the Boost Incentives allocation. As an example, if a project that is participating in the Boost Incentives program creates a bribe of $10 USD, then Archly will boost that bribe with an additional $2.5 USD worth of the token (TLOS, OP, KAVA, …) that is used for incentives. Likewise, if a project creates a bribe of $2000, then Archly will boost that bribe by $500 USD worth of the token used for incentives.

So to recap:

  • Rainbow Arc is evolving into Rainbow Arc+ to match our multi-chain strategy.
  • veArc Incentives gives projects veArc worth 10K of Arc locked for 6 months when they create a weekly bribe of $500 USD, 25K of Arc locked for 6 months when they create a weekly bribe of $1000 USD, and 50K of Arc locked for 6 months when they create a weekly bribe of $2000 USD or more.
  • Base Incentives continues on as it did for Rainbow Arc using 67% of the tokens given to Archly through various programs to create bribes on public goods or strategic pools.
  • Boost Incentives remain largely the same, except it now uses 33% of the tokens given to Archly to boost every $1 USD up to $2000 USD of bribes created by a project in the Boost Incentives program by $0.25 USD. And it requires the project to use the projects tokens, the network token, or a public goods token (BTC, ETH, USDC, USDT, …) for creating bribes.

Done! ;)

If you want to find out more about Rainbow Arc+, reach out to us on Discord or Telegram. Also don’t forget to follow us on Twitter.

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Archly Finance

Archly Finance is a cross-chain liquidity solution for protocols on a wide range of EVM chains to properly incentivize liquidity for their projects.