Greetings Publish0x community, today I want to write about Arable Protocol, a multi-chain synthetic farming protocol. Arable Protocol primarily runs on the Avalanche network but lets everyone use any asset classes on a single chain. You may consider the protocol ''young'' on active running days. In this post, I'll briefly introduce you to the Arable Protocol, what is synthetic tokens & farming, and we will talk about the arUSD, the main synthetic token to be used within the Arable Protocol. Now, let's start with the basics.

What's Arable Protocol, briefly?

Starting from 2020 Summer or in other terms DeFi Summer, users are faced with tons of yield options. Some were in staking rewards, some were liquidity mining incentives, some were farming rewards... But all of them had the same goal: to reward the active protocol users with tokens. There were (and are) multiple options to receive tokens in form of rewards but most of them are not on the same blockchain. So, users have to make cross-chain swaps to be able to receive incentives. After the launch of Arable, there is no need to worry about bridging tokens to receive multiple rewards without leaving the current chain of choice. And of course no need to worry about bridge hacks...

Arable Protocol was first introduced to the world on the 21st of September, 2021 with that article. As you may understand from the article or directly from your own experiences, making cross-chain swaps have its own difficulties on every single chain. The difficulties may vary from high transaction costs to long waiting times to get the underlying asset on the target chain. In such an environment, Arable's solution formula is simple but effective: creating synthetic assets. Synthetic assets are being used on the chain Arable runs but include many other chain's native tokens. For example, Solana or Ethereum are different examples of L1 tokens but both of them are available on the Avalanche chain as synthetic assets through the use of the Arable Protocol. You can use Curve on the Ethereum chain and many different staking protocols built on the Solana chain but all of them are chain-specific. You can't use them before the wallet switch on Metamask or downloading the Phantom wallet. With Arable, all of them are possible!

Synthetic assets are the mirror ''reflections'' of the underlying asset (SOL, ETH e.g.) on the Avalanche chain. For example, 1 SOL is equal to 1 arSOL. The prefix ''ar'' reflects that the token is synthetic assets created by Arable. The main asset used on the Arable Protocol is arUSD which is 1 USD pegged stablecoin for the Arable Protocol. We experienced depegs of many stablecoins in 2022. To prevent depeg scenarios of arUSD, it's created in a ''over-collateralized'' minting way and some parts of the protocol revenue go to arUSD token holders. Maintaining a stablecoin in multiple ways will bring more users to the protocol, more users mint more arUSD & create bigger revenue for the protocol. Shortly, win-win for everyone! 

The Native Token: $ACRE

As we all know, every single DeFi protocol has its native token. So does Arable. It is $ACRE. ACRE is built on the Avalanche chain with a 1 billion total supply. 10% of all supply has generated on the February token launch/genesis event. 100m $ACRE was split between airdrop receivers and strategic reserves with a ratio of 4:6. So, in the beginning, 40m tokens were airdropped to the community, 60m left for reserves, and the remaining 900m token mining are still in progress.

Above is the scheme reflecting the final overview of ACRE distribution after whole tokens are in circulation. In the announcement post of the ACRE token, it's said that a 300m token will be added to circulation and the number will be 1/3 less than the year before. The team gave the name ''THIRDING METHOD''. They are inspired by the mining mechanism of Bitcoin and its halving every four years. 

In the announcement post, the team talked about their expectations regarding the validator number. The expected number is 50 for the beginning phases, but the validator number until the 5th of March is only 14 and it is 33 currently. We can state that there is a need for multiple delegators for the protocol. To incentivize the validators, there is an ongoing ArableOlympics - Validators campaign. If you're interested in becoming an Arable Validator and you believe that you can get the most tokens staked, you're eligible to receive up to 500,000 $ACRE in return. Please check the relevant part of the article, here.

Minting Mechanism & Main Synthetic Asset: arUSD

There are 33 supported assets to be synthetically created via the minting mechanism on Arable Protocol. These include ETH, BNB, FTM, KAVA, DOGE, SOL, and many others. But the main synthetic asset used in Arable is arUSD, as I told you previously. You can receive arUSD by supplying ACRE, USDT, or AVAX to the protocol or directly purchasing on Curve. If you choose to mint directly by supplying one of 3 tokens, you'll be rewarded with some ACRE, too. There is a limit to mint arUSD, it's called maximal debt. And the amount of arUSD you minted is called Actual Debt. If the ratio between them exceeds 150%, your wallet address will be flagged as ''candidate to be liquidated''. If the ratio remains over 150% for 3 consecutive days or exceeds 200%, you will immediately be liquidated. 

There are multiple factors that affect the actual to maximal debt ratio. Please check the diagram below and the documents here for more information before you decide to mint. 

If you mint arUSD, it means you've completed one step of Organic Farming. Providing arUSD liquidity to any 3rd party DEX or mirror farming are some other options that users to receive additional rewards but are not limited to them. 

Why You Should Try Synthetic Assets Yield Farming on Arable?

• Unified: All transactions happen on a single platform.    
• Synthetic farms offer the same yields and rewards as native chains.
• Inexpensive: You never have to pay bridging fees, and the swapping fee is only 0.3% flat for any synth.
•   Simple: You do not have to get acquainted with multiple chain ecosystems and DeFi platforms. Everything is accessible in the Arable app, so you always know where your funds are invested.
• Flexible: The moving of funds between different yield opportunities was never this comfortable and low-cost
• Time-saver: Because you do not have to keep track of your multichain farming activities on multiple platforms and chains, the administrative overhead becomes negligible, saving time and hassle.

What to Expect from Arable Team in Late 2022 & Future?

The Arable Roadmap was published publicly on the 5th of March, 2022. Below is the diagram of the Arable Protocol.

There are four different categories and multiple steps to launch tokens successfully. Those are ''Mainnet & Token Launch'', ''MVP Development Phase'', ''Growth Phase'', and ''Scale Phase''. The Arable Protocol is active on the Avalanche chain since February 2022. And MVP phase is active now, too. Users can make mints, swaps, unbondings, liquidity staking, and many more on https://mvp.arable.finance/#/. 

As you may understand from their titles, the remaining 2 are open for submissions and contributions from the community itself. If you are interested in synthetic asset trading and/or Arable Protocol, please reach the team on Discord for more information. Don't forget to follow the official Twitter account of Arable to stay up to date.

*This article is created to spread the awareness of Arable Protocol and its features by utilizing my own experiences, their Medium account, and the documents. None of the words above contain any kind of investment advice! Please DYOR (Do Your Research) before investing.
**If you are interested in writing articles about ANYTHING on Publish0x, you can follow this link.