1.What is Arctic?
Arctic is the next-generation ecosystem-DEX on Aurora. Backed by the technical expertise of iZUMi Finance, Arctic brings DeFi innovation to Aurora in the forms of the veNFT and DLAMM (Discretized Liquidity AMM). Through its innovative DEX design, Arctic aims to bring DAO governance, deeper on-chain liquidity, and capital efficiency to the Aurora ecosystem.
As the EVM layer of NEAR, Aurora leverages NEAR’s technological edge to scale Ethereum, while enabling NEAR users to tap into greater liquidity and new assets through cross-contract calls. With this, Aurora’s ecosystem has witnessed the quickest growth in the last months, with currently more than 100 projects and 100 relayer nodes. Now the next chapter of Aurora’s development will be: improving on-chain liquidity, and DAO governance.
3.Discretized Liquidity AMM (DLAMM)
The other innovation of Arctic is its Discretized Liquidity Automated Market Maker (DLAMM) mechanism. Arctic’s DLAMM model can provide 3500x higher capital efficiency than the mainstream x*y=k AMM model. The higher capital efficiency of Arctic’s DLAMM means it can generate more trading fees and a higher APR under the same TVL to attract and retain liquidity better.
More importantly, with Aurora’s high performance and scalability, Arctic can support non-custodial limit orders based on DLAMM. This means users can set orders to buy tokens at a desired price without slippage or front-run attacks. This will bridge the gap between CEX users and DEX traders by providing a fully decentralized and automated trading infrastructure with the familiar user experience of limit order exchanges.
4.veNFT and Governance Design
Arctic takes veNFTs one step further: instead of stopping at emission-voting rights, Arctic endows veNFTs with full governance rights to the Arctic DAO. Furthermore, Arctic’s veNFTs are combinable with other veNFTs, which allows holders to be far more creative and flexible with their governance rights and underlying liquidity.
5.What is the Ecosystem of Arctic
-Inclusive and efficient veNFTs airdrops to Aurora projects based not only on their TVL but also a commitment to mutual incentives.
-Reserved veNFTs for future Aurora projects to support their initial development.
-Bootstrapping the $AURORA <> $ARCTIC, $USN<>$ARCTIC and $NEAR<>$ARCTIC pairs as the core liquidity pool for Aurora ecosystem.
-10% of the DEX transaction fees will be used to buy back $ARC Rebate for Aurora’s gas fees for traders on Arctic to reduce their trading costs.