Introducing ALP and Nitro LP Event

It’s been a week since the testnet launch, and we are excited to see an overwhelming response from our community. We are grateful for your trust and support.

In this post, we will introduce on Aark Digital Liquidity Pool for the first time and discuss the Nitro LP event in detail. So, let’s dive in!

Aark Digital Liqudity Pool : ALP

Basic Structure
Aark Digital’s Liquidity Pool is a quoted in USDC. When users open their LP position, the value of the position is denominated in USD balance which indicate their liquidity share in Virtual USD pool at Aark Digital.

Trading fees & PnL of traders affect the pool’s value. Trader’s loss expands the pool & LP’s USD balance while a profit payout decreases it.

What is Virtual USD?

Aark Digital LP uses Virtual USD, a unique unit pegged to USDC. PnLs of traders and LPs are settled in Virtual USD which are over-collateralized by users’ collaterals.

In essence, Virtual USD is a form of collateralized debt position. In the event that the collateralization ratio falls below a certain level, liquidators will liquidate a portion of the collateral to ensure the over-collateralization is maintained.

How to Open LP Position

In order to provide liquidity, users must deposit assets as collateral to open their LP position. The collaterals will be reflected in their LP account in USD balance, calculated based on the weight ratio. For more details on the ratio, please refer to our Gitbook.

Users can deposit any whitelisted assets of their choice as collateral and earn profits while hodling assets. They can optimize earnings and achieve delta-neutral positions by depositing a single asset at a time.

Leveraged LP

Aark Digital’s Leveraged LP provides up to maximum 10x leverage, allowing LPs to increase their potential returns with smaller investment. At the initial phase the leverage ratio will start from 2x, then gradually increase up to 10x.

Hedging Pool Drain Risk

Aark Digital’s unique funding rate mechanism imposes funding fees every second to balance the ratio of open interests (OI) to 50:50. This protects the LP pool from paying out enormous profits to heavily skewed traders.

Launching Nitro LP : Exclusive Opportunity for Extra LP rewards!

Nitro LP is a special event for giving out benefits to our early users. Did you know, during the Closed Beta ALP’s leverage ratio will be limited? By joining Nitro LP, you can maximize leverage ratio and earn rewards assigned to each tier.

More Details on Nitro LP

Nitro LP Tier List
  1. Nitro LP only accepts USDC deposits.
  2. Leverage Ratio of each tier is a fixed rate that will be applied to the total deposited amount of each basket.
  3. Each tier has a two-week application period from the launch date.
  4. Deposited funds will be held locked until the application period. They can be withdrawn without a limit after it ends.
  5. Clicking “withdraw all” will withdraw the funds and remove your access the program.
  6. By withdrawing, you forfeit the right for :
    - Rebates for remaining periods
    - Potential airdrops
  7. All rebates are distributed on the 5th of each month at 0:00 UTC.
  8. The Nitro LP event will operate for 3 months following the distribution of the first rebate.

Nitro LP Launch Dates

  • Closed Beta Tester : April 9th 1:00 PM (UTC+0)
  • Public : April 11th 9:00 AM (UTC+0)

Those who are selected as testers for Closed Beta will be granted early access for depositing. Please check your email.

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