Investment Memo: Arkis

Against the backdrop of shifting tides in DeFi, recent events like the decline of FTX and 3 Arrows Capital highlight the need for fresh approaches. Enter Arkis, which aims to revolutionize risk management, tackle liquidity fragmentation, and transform institutional digital asset investment.

Arkis’ journey began in 2022 when childhood friends from Ukraine, Serhii Tyshchenko and Oleksandr Proskurin, joined forces. With a deep understanding of the challenges facing DeFi participants, including fragmented liquidity, inefficiencies in risk assessment, and the absence of robust institutional-grade infrastructure, Serhii and Oleksandr leveraged their unique blend of academic mathematical expertise and traditional finance experience to develop a platform that would revolutionize risk management in DeFi and empower institutional investors to navigate the market with confidence.

Arkis operates as a Digital Asset Prime Brokerage platform that bridges the decentralized and institutional financial realms. At its heart lies an institutional-grade margin engine, empowering users to maximize their on-chain trading positions across diverse protocols and blockchains, all seamlessly managed within a unified on-chain margin account. This robust infrastructure, fortified by a proprietary mathematical methodology, not only elevates risk management standards but also instils confidence in capital providers offering undercollateralized loans to DeFi hedge funds. For asset managers, Arkis opens the door to leverage trading opportunities, accessing borrowed assets from institutional liquidity providers shielded by a vigilant risk engine and strategic liquidation planning. Furthermore, Arkis has cultivated a rich ecosystem of both on-chain and off-chain applications, facilitating under-collateralized lending and portfolio margin. This comprehensive suite of solutions positions Arkis at the forefront, delivering unparalleled capital efficiency and flexibility within the dynamic landscape of Web3.

Addressing Liquidity Fragmentation

Liquidity fragmentation is a significant challenge in DeFi, leading to increased costs, inefficiencies, and market complexities. Arkis addresses this challenge through its comprehensive Arkis Protocol and Arkis Margin Engine.

• Arkis Protocol — encompasses trading and liquidity pools, facilitating multi-chain undercollateralized leverage through the Arkis Engine. Users can earn passive interest on secured liquidity or access borrowed funds for leveraged trading, fostering a dynamic ecosystem of liquidity provision and utilization.
• Arkis Margin Engine — acts as a centralized portfolio analytics system, evaluating portfolio risk and determining margin requirements for leveraging. By offering multichain leverage with significantly lower Loan-to-Value (LTV) ratios compared to traditional protocols, Arkis provides enhanced financial flexibility and security.

Exceptional Infrastructure and Risk Management

Arkis’s architectural innovation goes beyond traditional solutions, boasting advancements in asset valuation and management. The margin engine ensures capital efficiency for borrowers while maintaining robust safety measures for lenders. Features like cross-margining and meticulous liquidation planning fortify Arkis’s platform reliability in volatile markets. Notably, Arkis has recently teamed up with industry leaders like Edge Capital and 1inch, expanding its horizons in reshaping DeFi hedge fund operations and enhancing liquidity aggregation.

“Arkis creates the perfect interaction between borrowers and lenders in the DeFi space. Smart contracts, which are the backbone of Arkis technology, provide a new level of transparency, security, and efficiency in debt transactions with crypto assets. We’re very thrilled to support Ukrainian founders in achieving their ambitious goals,” comments Adam Hashchyshyn, Principal at Roosh Ventures.

With DeFi evolving, platforms like Arkis are leading the charge, pushing the boundaries of decentralized finance. Their innovative approach to leverage without full collateral has the potential to transform investment strategies.

For more information, visit arkis.xyz.