Arbiten Finance
ArbiTen Finance is an innovative crypto project built on the Arbitrum Network, offering an algorithmic stablecoin protocol pegged to 1/10 ETH. The project utilizes two different methods to maintain the peg: Seigniorage, similar to Tomb Finance and its forks, and Fractional Collateralization, with minting and redemption, similar to Frax and Iron Finance.
One of the unique features of ArbiTen Finance is the introduction of a Delay and Scale-Up system for minting and redemption to prevent them from being used excessively. This system ensures that the Minting and Redemption features are strictly limited at the beginning and are gradually introduced in a controlled manner, which can also be manually reduced to prevent the risk of excessive redemption leading to overminting of the governance token, 10SHARE.
ArbiTen Finance has made specific decisions about Tokenomics, Monetary Policy, Transaction Tax, and Presale allocations to maximize the system's sustainability. By combining Seigniorage and Fractional Collateralization, ArbiTen Finance aims to address the weaknesses of both Tomb Finance and Iron Finance, which have faced challenges in maintaining their pegs in the past.
One of the weaknesses of Tomb forks is the bonding mechanism's inability to restore the peg on its own, as the supply of peg token decreases with bond purchases but does not directly cause spot purchases. ArbiTen Finance addresses this by incorporating the redemption system from Iron Finance, which provides a direct buying incentive when ArbiTen is below peg, strengthening the overall system.
Similarly, ArbiTen Finance addresses the weakness of Iron Finance, where the governance token, Titan, had no intrinsic value and could drop to zero, causing the system to collapse. In contrast, the 10SHARE token in ArbiTen Finance, which serves as the governance token for both systems, has an intrinsic source of value as it is emitted by the 10SHARE Boardroom pool and is redeemable for ArbiTen, the peg token.
To maintain the peg, ArbiTen Finance continually mints ArbiTen until the price drops below peg. However, to increase the collateralization ratio and prevent excessive minting, modifications have been made to the minting system. The minting price of ArbiTen increases when the price is above peg, but slightly less than the spot price, serving as an incentive to add funds to the treasury.
ArbiTen Finance acknowledges that it is a highly experimental and high-risk system, combining the bonding mechanism of Tomb and the redemption system of Iron Finance. However, the project has taken measures to address the weaknesses of both systems and aims to create a more sustainable stablecoin protocol on the Arbitrum Network.
Website: https://arbiten.finance
Twitter: https://twitter.com/ArbiTenFinance
Discord: https://discord.gg/xt9cy9uAGF
Telegram: https://t.me/Arbi10Finance