Investment strategy
An explanation for recommended investment strategies for each purpose.
Capital Guaranteed
If you want principal guaranteed even though the interest is low—invest based on the stablecoin, Archi Dollar (ARCD).
Archi Dollar can be considered equivalent to $1—because it is minted using DAI as collateral—which is fixed at $1. There is no loss from fluctuations since there are hardly any price fluctuations.
Deposit Archi Dollars in Archi Bank. Receive deposit interest.
Stake the Archi Bank’s Archi Dollar (abARCH) that you received by depositing in Archi Bank in the abARCD stake pool, and mine CATG with the interest.
Investing in stablecoins does not mean that there are no costs involved. This is because gas fees for transaction processing are used when using Ethereum-based services.
The Ethereum gas fee can be a burden if a small investment is made, and there might be a loss in principal.
High Returns
If you want high returns with a risk of principal loss, participate in Archi Prize’s prize pool. The DAI V2 and ARCD V3 prize pool have a 10% risk—10% of the principal will be allocated as prize money and reserves in the prize pool when making deposits. You may lose 10% if you do not win even once by the time of withdrawal.
Long-term Holds
If you expect a price increase in the long-term for Ether or CAT—deposit in Archi Bank and receive the increase and interest income. Alternatively, you can supply liquidity to Archi Swap with Ether and CAT, and stake the LP tokens received to mine CATG.
Arbitrage Trading
With Archi Bank—you can arbitrage with Ether or Cat—which is not a stablecoin and has high price volatility.
If the price has risen significantly and you expect it to fall in the future—borrow Ether or CAT and sell it on the central exchange, and then you can buy it from the central exchange when the price drops to repay the loan to make a profit.
CAT loans are currently suspended at this point.
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