What is ARCx (ARC) | What is ARCx token

In this article, we’ll discuss information about the ARCx project and ARCx token

What is ARCx?

ARCx is a decentralized scoring protocol that powers on-chain identity through the issuance of a DeFi Passport.

The first page, or element, in the DeFi Passport is an on-chain credit score. This initial score is issued to an identity based on an assessment of the address’ on-chain activity. More details on this metric and its assessment are on a dedicated Wiki page describing the Credit Score.

Why ARCx?

Earn interest: Buy and hold STABLEx (our native stable coin) in order to earn a fixed interest rate.

Unlock liquidity: Deposit your assets and unlock their value through our stablecoin STABLEx.

Earn ARCx: Use our platform and earn ARCx Governance Token. This is a decentralized protocol.

What can I do with a DeFi Passport?

During Phase 1 of the launch, identities who have been issued their DeFi Passport can access ‘Passport Enabled Farms,’ which exclusively offer high APYs that are incentivized by ARCx and our genesis launch partners.

With time, DeFi Passport holders will then be issued with a Credit Score which will mark the commencement of Phase 2. This Credit Score can then enable dynamic terms for borrowing depending on the borrower themselves.

Looking Forward

The ARCx DeFi Passport is designed to be a staple of users and protocols in Decentralized Finance on multiple blockchains. Beyond the ARCx Credit Score constituting its first page, the applications are endless for the pseudonymous, decentralized profiling and assessment of identities based on on-chain activity.

In the near future, ARCx plans to continue to add more scores and pages to the DeFi Passport. These would include:

“Yield Farming Scores” that evaluates whether a farmer has a long-term mindset, which shows support for a protocol’s long term growth—as opposed to farming and immediately selling. A higher Yield Farming score based on these parameters could potentially enable favorable APY to incentivize a higher quality and activist community.
“Airdrop Score” that evaluates whether an address on-chain holds airdrops—again, showing support for a protocol’s long term growth—or immediately sells their tokens.
“Governance Score” that signals to protocols and builders how actively a user is involved in on-chain governance. Beyond metrics of activity in governance, the kinds of decisions a user makes on-chain and the nature of their governance in given protocol(s) could be very telling of motives and future behavior.
“Trader Scores” which determine the differences between bots and real identities to give different rates based on how a protocol wants to interact with a counterparty. For example, a DEX could enable lower trading fees for identities compared to that for bots

How to Apply for a DeFi Passport

With security being a paramount concern, the rollout of the ARCx DeFi Passport will initially take place in batches.

The first batch, or Batch #01 will consist of 100 different addresses. The identities who are in this first batch will receive a ‘First Edition’ version of the DeFi Passport, which will provide that identity with benefits within the ARCx ecosystem. Batch #02 will then receive a ‘Second Edition’ version of the DeFi Passport, and so on.

To apply for a batch, you must visit arcx.money, connect your wallet, and send 1000 DAI to join the waitlist. To minimize bad actors and encourage long-term engagement, identities who deposit the DAI to join the waitlist will have their DAI held as a deposit for an amount of time published on the application page, which ultimately may change based on the edition of the DeFi Passport. For example, the First Edition DeFi Passport may hold this deposit for one year, while future editions of the DeFi Passport may hold the deposit for multiple years.

Early ARCx DeFi Passport holders will benefit by:

Having exclusive access to yield farming opportunities,
Be able to borrow at the lowest industry collateral ratios.
Having access to other offers depending on what batch, or what Edition Passport they received.

What is a Credit Score?

The first page of an identity’s DeFi Passport will consist of their Credit Score. This Credit Score will be issued based on an on-chain analysis of an Ethereum address’ activity. Once a score is assigned, ARCx can then enable dynamic terms for borrowing depending on the borrower themselves.

The Credit Score will be judged on a scale from 0 to 999, with the 999 score being the most lucrative.

What factors go into assigning a Credit Score?

Phase 1, the initial implementation of the DeFi Passport will issue identities with a binary measurement (‘0’ or ‘1’) that simply measures whether the address is a ‘bot’ or ‘real’ (human) identity. Addresses that are deemed to be ‘bots’ will not be issued with a DeFi Passport, whereas genuine addresses will be issued with theirs.

Phase 2 of the launch of the Credit Score will assign a DeFi Passport with a score on a scale from 0 to 999.

Some factors that give weight to what a good borrower would look like include, but are not limited to the following:

Had a loan on Compound/Maker/Aave for 6+ months
Has never been liquidated
Maintained a large collateral position while maintaining a high (time-averaged) collateral ratio
Actively repaid loans during days of high market volatility

Additionally, ARCx has built and continues to explore machine learning models to backtest classification of ‘liquidated’ or ‘not liquidated’ positions. These models provide interpretable correlations between on-chain activity and credit risk that make ARCx’s DeFi Passport Credit Score model more sophisticated than traditional, actuarial credit score models.

How the Credit Score is Used

Example Relating Credit Score to Lending Collateral Ratios

The moving pieces involved in utilizing the DeFi Passport Credit Score are best visualized (below) with a concrete example: consider a single collateralized account, called here a ‘vault,’ with a dynamic collateral ratio set by the vault owner’s DeFi Passport Credit Score. In this case, the Vault (which contains collateral + user’s holdings), passes a set of numbers to a smart contract ‘assessor.’ The Assessor will request the user’s credit risk on a scale from 0 - 999 from the Credit Score. This score will then be ‘mapped’ onto a continuous distribution relevant for modifying the Vault conditions through a function called the Mapper. The result is then returned to the Vault in order to return the user’s specific collateral ratio.

Visual of DeFi Passport Credit Score Components

Note the DeFi Passport Credit Score is not a frozen number; it can be updated as needed to provide the most relevant information and a dynamic collateral ratio. This example demonstrates how the DeFi Passport Credit Score in particular adds value to on-chain lending protocols, but this process can be generalized to be integrated with any range of DeFi protocols and their relevant parameters.

ARCx Governance Token (ARCX)

The core function of the ARCx Governance Token is to be the governance mechanism for the ARCx protocol itself. The token is intended to align incentives between various stakeholders within the ecosystem to promote sustainable growth and fair governance.

The ARCx Governance Token currently allows token holders to vote on expenditure from the treasury. In the future, ARCx token holders will be able to vote to receive cash flows generated from the network and participate in native on-chain governance to upgrade the protocol itself.

The first stop in on-chain governance of ARCx is the community forum. An ARCx Improvement Proposal (AIP) should be born from open discussion within a post or on a new post, leading to a Work-in-progress (WIP) proposal, and finally an AIP in its final form to be voted upon. The ARCx DAO encourages you to create an account on the ARCx community forum and get involved.

ARCX Token Split and Migration

Token Split and Migration

After a successful snapshot vote on AIP-2 - the ARCx community has proceeded with a split of the ‘Old ARCx Governance Token’ 1:10,000. This will result in a total supply of 100,000,000 ARCx Governance Tokens.

As an indication, if you hold 1 ARCx worth $10,000 pre-split, you would get 10,000 ARCx post split - each worth $1.00.

Where to Migrate?

The migration contract is accessible through the arcx.money website, which will allow Old ARCx token holders to burn their old tokens and mint new ARCx tokens. This contract will run in perpetuity, meaning that there is no risk of a holder missing out on the migration.

The original ARCx Governance Token will be called the ‘Old ARCx Governance Token’ and the new token post-split will simply be referred to as the ARCx Governance Token.

The core function of the ‘post-split’ ARCx Token will be exactly the same - to govern the protocol, and to use it as a tool to incentivize growth and integrations with other protocols.

Proposals and Voting

Any community member of ARCx can work towards a governance proposal on the ARCx Forum. A key component of community governance involves open communication. ARCx Improvement Proposals (AIPs) should generally involve the following workflow:

Discussion on the forum/discord channel
Work-in-progress for a draft of the AIP as its own post on the forum
Final draft of the AIP to be submitted for voting

Whenever possible, on the forum, try to stick to the guidelines that are posted and pinned on each category so that discussions and proposals can be easily read, contextualized, and vetted by the community.

In the event your proposal gains significant traction within the community, it can then be voted on via Snapshot voting. Snapshot voting allows the community holding the token at a specific moment (block height) in the ETH blockchain without spending transaction fees.

An AIP may enact changes to the core protocol. For a vote considering an AIP to ‘pass’ and become binding, it must gain a quorum of at least 51% of the total voting power in the network.

How and Where to Buy ARCx token ?

ARCx has been listed on a number of crypto exchanges, unlike other main cryptocurrencies, it cannot be directly purchased with fiats money. However, You can still easily buy this coin by first buying Bitcoin, ETH, USDT, BNB from any large exchanges and then transfer to the exchange that offers to trade this coin, in this guide article we will walk you through in detail the steps to buy ARCx token.

You will have to first buy one of the major cryptocurrencies, usually either Bitcoin (BTC), Ethereum (ETH), Tether (USDT), Binance (BNB)…

We will use Binance Exchange here as it is one of the largest crypto exchanges that accept fiat deposits.

Binance is a popular cryptocurrency exchange which was started in China but then moved their headquarters to the crypto-friendly Island of Malta in the EU. Binance is popular for its crypto to crypto exchange services. Binance exploded onto the scene in the mania of 2017 and has since gone on to become the top crypto exchange in the world.

Once you finished the KYC process. You will be asked to add a payment method. Here you can either choose to provide a credit/debit card or use a bank transfer, and buy one of the major cryptocurrencies, usually either Bitcoin (BTC), Ethereum (ETH), Tether (USDT), Binance (BNB)…

☞ SIGN UP ON BINANCE

Step by Step Guide : What is Binance | How to Create an account on Binance (Updated 2021)

Next step - Transfer your cryptos to an Altcoin Exchange

Since ARCx is an altcoin we need to transfer our coins to an exchange that ARCx can be traded. Below is a list of exchanges that offers to trade ARCx in various market pairs, head to their websites and register for an account.

Once finished you will then need to make a BTC/ETH/USDT/BNB deposit to the exchange from Binance depending on the available market pairs. After the deposit is confirmed you may then purchase ARCx from the exchange.

The top exchange for trading in ARCx token is currently https://hoo.com

Find more information ARCx

☞ Website ☞ Explorer ☞ Social Channel ☞ Social Channel 2 ☞ Message Board ☞ Documentation ☞ Coinmarketcap

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