Unprecendented New Yield Opportunity for Institutional Lenders and Borrowers
Arkis, a digital asset prime broker in the decentralized finance (DeFi) space, has integrated Pendle, the permissionless yield-trading protocol where users can execute yield-management strategies. This integration will transform bilateral credit transactions between institutional funds, offering opportunities for yield farming hedge funds, institutional creditors, and onchain credit risk managers.
A New Paradigm in DeFi Credit Transactions
Arkis’s platform enables dynamic bilateral credit transactions. By leveraging Pendle’s capabilities, Arkis users can now collateralize and deploy PT (Principal Token) transactions.
Borrowers on Arkis’s platform have access to diverse collateral options, allowing them to collateralize a wide range of liquid ERC-20 tokens, including wBTC, stETH, CRV, LST, LP tokens, and now PT. Additionally, they can swap tokens via 1inch, Uniswap, or Curve.
Arkis accepts only PT tokens with underlyings that have 1:1 token redemptions, following the recent depeg event of Renzo Finance. As a result, Arkis can use fundamental oracles (1-to-1) in these transactions, adding an extra layer of convenience for asset managers and decreasing liquidation risk compared to relying on DeFi pools liquidity oracles.
Arkis is the only platform offering up to 4x leverage on PT tokens. On Arkis, boosted PT tokens returns can reach up to 50% on eETH PTs and 160%+ on Ethena USD.
Key Features of the Integration
- Collateralization with PT Tokens: Users can provide collateral in Pendle PT (Principal Tokens) and borrow pegged assets (like wETH or USDT) under-collateralized. This collateral is stored in Arkis’s smart contracts, enabling seamless trading unless liquidation occurs.
- Advanced Margin Account Management: Using the Pendle interface, users can seamlessly execute complex transactions independently through the Arkis Margin Account and Wallet Connect. For instance, users can:
- Use eETH PT as collateral.
- Borrow wETH.
- Use the borrowed wETH to buy more PT.
- Efficient Liquidation Management: Arkis’s infrastructure addresses the non-trivial liquidation operations of PT tokens.
Enhanced Capital Efficiency and Yield Potential
The Arkis prime brokerage model is inspired by traditional finance, amalgamating the security of over-collateralized lending with the efficiency of under-collateralized models. This holistic approach ensures a secure and efficient lending environment, drawing on the best practices of both CeFi and DeFi.
Lenders benefit from the enhanced capital efficiency provided to borrowers. As borrowers leverage their assets more effectively, they are often willing to pay higher interest rates for borrowed funds, resulting in higher yields for lenders. The diverse range of credit transactions, including sophisticated yield farming strategies, offers lenders a variety of investment opportunities, allowing them to spread risk.
Looking Forward
Lenders and borrowers are already leveraging Arkis’s Pendle integration. Several angel syndicates have begun building credit vaults and funds on top of Arkis. Additionally, Arkis has introduced two new points programs: lenders will earn 10x sats from Ethena for every dollar provided that is going into USDe during the trade, and 1x Kelp DAO miles for every dollar provided in ETH that is going into rsETH and other similar tokens.
Arkis is currently building the next version of its margin engine and has a whitepaper available upon request that describes its mechanics. This new engine will integrate CeFi and DeFi financial primitives into a single portfolio. It will consider yield-bearing positions on the blockchain, such as stETH, alongside short perpetual positions on CeFi accounts. By recognizing delta-neutral trades, the engine will significantly improve capital efficiency.
You can learn more about Arkis here or by reading through documentation. The team is eager to chat with interested users and can be reached at operations@arkis.xyz.
Disclaimer
Information is provided for general educational purposes only. This presentation is not an offer to sell securities or a solicitation of offers to buy securities. Nothing contained herein constitutes investment or other advice nor is it to be relied on in making an investment decision. For more important information, please see disclaimer
