ArbiTen Review
ArbiTen
arbiten.finance
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Their Official site text:
ArbiTen Finance
We are currently in the pre-launch phase. Please see our !
Welcome to ArbiTen Finance, the algorithmic stablecoin protocol pegged to 1/10 ETH on Arbitrum Network!
The peg is maintained by :
, similar to Tomb Finance and its forks, and
, with minting and redemption, similar to Frax and Iron Finance
The 10SHARE token is the governance token of both the Tomb fork and Iron Finance parts. ArbiTen is the peg token!
A system for minting and redemption has been added to prevent them from being used excessively!
To prevent the risk of excessive redemption leading to overminting of 10SHARE, we have newly introduced a system to ArbiTen Finance. The Minting and Redemption features are strictly limited at the beginning and are introduced gradually in a controlled manner and can be manually reduced.
We have also made specific decisions about , , , and to maximize the system's sustainability.
We hope that using both Seigniorage and Fractional Collateralization will shore up the weaknesses of both component systems. In many cases, the bonding mechanism of Tomb forks has not worked well enough to restore the peg. The Iron Finance minting and redemption system should strengthen the Tomb system's ability to regain peg.
The main fundamental weakness of the Iron Finance system was that its governance token had no intrinsic value. Therefore, its price could easily drop to zero when combined with price oracle issues during redemption. However, because the 10SHARE Boardroom pool emits redeemable ArbiTen, it will have an intrinsic source of value and should not drop to zero, as did Titan.
Because the protocol continually mints ArbiTen until the price drops below peg, some modifications to the minting system have been made to . The redemption value of ArbiTen always totals 0.1 ETH worth of tokens, but the minting price increases when the ArbiTen price is above peg. The minting price increases slightly less than the spot price, which should serve as an incentive to add funds to the treasury when the ArbiTen price is above peg.
As ArbiTen Finance has both the bonding system of Tomb and the Redemption system of Iron Finance, it is a highly experimental, high-risk system. Be careful!
In contrast to the warning above, we thank you for investing an irresponsible amount in ArbiTen Finance. If you would like to read more about ArbiTen Finance, please see our section and the rest of our Docs. Many cheers!
FAQ
Welcome to the ArbiTen Finance Frequently Asked Questions page!
Shut up and take my money! Which buttons do I press to ape?
Please check our page!
Why does ArbiTen Finance exist?
Stablecoins are the most popular application of crypto. However, two of the major stablecoin protocol archetypes out there, Tomb Finance and Iron Finance, both seem to have substantial weaknesses that have prevented them from having a long life expectancy. ArbiTen finance addresses those weaknesses to create a more sustainable system.
What is the big problem with Tomb forks?
In Tomb forks, the bonding mechanism often fails to restore the peg on its own. When bonds are purchased, the supply of peg token goes down, but this does not directly cause spot purchases. Therefore, the spot buys necessary to restore the peg often fail to materialize.
What was the big problem with Iron Finance?
In Iron Finance, the peg token was always redeemable for 1 USD worth of tokens, providing an incentive to buy when the price was below peg, unless time-weighted average price (TWAP) oracle issues with the Titan (share) token prevented the numbers from adding up. However, the Titan token had no intrinsic source of value. It only had two purposes, minting/redemption of the peg token and generating yield in a pool, which were not a sufficient raison d'etre when people sold Iron, the peg token. This, combined with a Titan price oracle with a TWAP period that was too long, meant that Titan could quickly drop to zero price, causing the system to collapse.
How does ArbiTen solve these problems?
In ArbiTen Finance, the system of Tomb and the system of Iron Finance operate in parallel. The 10SHARE token is the governance token of both systems, and both systems should strengthen each other. This addresses the shortcoming of Tomb because the redemption system provides a direct buying incentive when ArbiTen is below peg, which the Tomb bonding system lacks. It also addresses the shortcoming of Iron Finance because the single 10SHARE pool emits ArbiTen, giving it an intrinsic source of value. Therefore, its price should not drop to absolute zero, as Iron Finance's Titan token did. Furthermore, the 10SHARE TWAP period has been set to 45 seconds, as opposed to the 10-minute period used in Iron Finance, so the redemption system should maintain its effectiveness in all market conditions. We have newly introduced a system to ArbiTen finance to prevent the excessive redemption problem.
What should happen when the ArbiTen price is over peg?
The ArbiTen minting price rises, but not quite as much as the spot price ()
A minting discount below spot price should encourage minting, which could add ETH to the treasury at more than 0.1 ETH/ArbiTen
This increases the effective collateralization ratio
The protocol issues new ArbiTen to the 10SHARE pool
10BOND redemption bonuses are available above peg
What should happen when the ArbiTen price is under peg?
No new ArbiTen is produced as 10SHARE staking rewards
ArbiTen is removed from the circulating supply via 10BOND purchases
ArbiTen can be purchased from the market and redeemed for 0.1 ETH worth of ETH + 10SHARE tokens
What are the risks?
This system is highly experimental, so invest at your own risk! We have done our best in putting the system together, but the proper tunings cannot be determined by direct experience.
We anticipate building a redemption treasury through minting. However, not all ArbiTen will enter the supply through minting: some will be emitted by the 10SHARE pool. Therefore, the effective collateralization ratio (ECR) may decline. A decrease in ECR would reduce the amount of ETH and increase the amount of 10SHARE received in redemption.
The 10SHARE token can be received from more sources than the share token in a standard Tomb fork. There is a emitted via pools, which is normal for Tomb forks, but it is also minted during the redemption process. This redemption minting takes place at the time-weighted average price (TWAP), meaning that an arbitrary amount of 10SHARE could be minted, although there is flash attack protection.
Who is on the team? Aren't you kind of an asshole?
Yes! Please see the for more details!
Ser, wen AMA?
April 9, 5pm GMT:
April 10, 2pm GMT:
April 10, 5pm GMT:
April 10, 7pm GMT:
How can I learn more?
Please join our to ask any further questions!
Presale/Launch Info
Presale date: April 10, 2023, 10PM GMT
Presale ends: April 11, 2023, 10pm GMT
Format: First come, first served; no whitelist
Total hardcap: 100 ETH for 1000 ArbiTen
Limit: 5 ETH/wallet
Launch Schedule:
April 11, 11pm GMT: Liquidity added
April 12, 12am GMT: Swap from presale tokens to protocol tokens
April 12, 10pm GMT: Protocol starts
Any unsold presale tokens will be burned. Of the total raised, 60% goes to liquidity and collateral seed
Launch Tokenomics (ArbiTen):
Initial Supply: 1440 ArbiTen
400 Liquidity
1000 Presale
40 Incentives
Launch Tokenomics (10SHARE):
Initial Supply: 6 10SHARE
5 Presale
0.8 DAO
0.2 liquidity
Presale Funds Allocation
40%: ArbiTen liquidity
16%: Redemption Treasury
4%: 10SHARE liquidity
20%: Team salaries
20%: Infrastructure
Tokenomics
Initial Token Supplies:
See page
10SHARE Tokenomics:
Farming pool emission rate: 0.00011 10SHARE/second (9.5/day, 3.46k/year) initially, can be changed
Vesting Duration = 10 years
Dev Fund Pool Allocation = 500/year
DAO Fund Pool Allocation = 500/year
Equity Fund Pool Allocation = 500/year
*Note: These are the base emissions for the Dev, DAO, and Equity funds. There is a multiplier that can uniformly adjust the amounts emitted to the Dev, DAO, and Equity funds. These emissions may be adjusted according to market conditions and minted supply.
ArbiTen Emission Shares:
Insurance Fund = 5%
Dev Fund = 10%
DAO Fund = 10%
Equity Fund = 10%
Farming = 65%
ArbiTen Tokenomics:
Max Supply Expansion/Epoch = 1.00% (can be changed)
Max Supply Contraction/Epoch = 3.00%
Epochs in Bootstrap Period = 24
Supply Expansion %/Epoch During Bootstrap Period = 1.1%
Emission via Genesis Pools: 0.001 ArbiTen/second for 4 days (can be changed)
Dual Peg Enforcement
ArbiTen Finance has dual peg enforcement mechanisms working in parallel:
, as in Tomb Finance, and
, as in Frax and Iron Finance
With this dual peg enforcement mechanism, 10SHARE has two separate sets of functions. As part of the seigniorage system, the single 10SHARE pool emits ArbiTen tokens. As part of the fractional collateralization system, 10SHARE is required for ArbiTen minting and rewarded for redemption.
The dual sources of functionality should shore up the weaknesses of the component systems. Because the 10SHARE Boardroom pool emits ArbiTen, it will have an intrinsic source of value and should not drop to zero, as happened with Iron Finance's Titan token. In addition, the minting and redemption cycle should strengthen the Tomb system's ability to regain peg. We have set the 10SHARE TWAP period to 45 seconds, which should also cement 10SHARE's utility in redemption.
When ArbiTen is above peg:
The ArbiTen minting price rises, but not quite as much as the spot price
A minting discount below spot price should encourage minting, which could add ETH to the treasury at more than 0.1 ETH/ArbiTen
This increases the effective collateralization ratio
The protocol issues new ArbiTen to the 10SHARE pool
10BOND redemption bonuses are available above peg
When ArbiTen is below peg:
No new ArbiTen is produced as 10SHARE staking rewards
ArbiTen is removed from the circulating supply via 10BOND purchases
ArbiTen can be purchased from the market and redeemed for 0.1 ETH worth of ETH + 10SHARE token
ArbiTen Finance also has the , which is envisioned partially as a price stabilization fund. However, buying up 10mb supply via the DAO treasury is meant as more of a backup plan. We hope that the powerful combination of the and systems will enforce the peg.
Seigniorage
In Seignorage:
The single 10SHARE (Boardroom) pool emits ArbiTen as long as the TWAP (time-weighted average price) of ArbiTen remains above peg
Each epoch's ArbiTen emissions are a percentage of the "Tomb supply", i.e., the Iron (minted - redeemed) supply is subtracted from the circulating supply
When the price of ArbiTen goes below peg, the supply of ArbiTen is reduced by 10BOND minting
When the price then recovers to be above peg, an ArbiTen bonus is given for 10BOND redemption
In ArbiTen finance, bonds have no expiration date.
The redemption bonus variable is up to 50%, which is squared (25%):
When TWAP = 1.0 peg, the bonus is 0%
The redemption starts being given at TWAP = 1.01 peg
When TWAP = 1.1 peg, the bonus is 25% (each 10BOND can be redeemed for 1.25 ArbiTen)
The bonus variable increases linearly, e.g., 25% at TWAP = 1.05 peg.
Fractional Collateralization
In fractional collateralization:
The ArbiTen supply is fractionally collateralized by an ETH redemption treasury
Minting and redemption are set up to increase the effective collateralization ratio
Minting
ArbiTen can be minted by paying 10SHARE + ETH
Total mintable ArbiTen (New in ArbiTen Finance)
Minting payment token ratio determined by the target collateral ratio, TCR
Example: TCR = 80%; TWAP = 1.0 peg; payment = 0.08 ETH + 0.02 ArbiTen worth of 10SHARE + fee
TCR automatically updated according to ArbiTen TWAP
Minting price = 0.1 ETH + fee if ArbiTen is below peg
Minting price = 0.1 ETH + F*(TWAP - 0.1 ETH) + fee
F = 98% if ArbiTen is above peg
F = 0 if ArbiTen is below peg
Fee = 0.4%
Redemption
ArbiTen can be redeemed for 10SHARE + ETH
Total redeemable ArbiTen starts on a 7-day delay and (New in ArbiTen Finance)
Total Redemption Value = always 0.1 ETH - fee
Redemption token ratio determined by the effective collateral ratio (ECR, the amount of ETH in the redemption treasury / the amount of ArbiTen in existence)
Example: ECR = 50%; payment = 0.05 ETH + 0.05 ETH worth of 10SHARE + fee
The 10SHARE given in redemptions is new 10SHARE minted by the protocol
Redemption does not directly affect the ECR
Redemption is done in 2 steps to prevent flash loan exploits
Fee = 0.4%
10SHARE TWAP period = 45 seconds (was 10 minutes in Iron Finance)
Delay and Scale-Up
ArbITen Minting
Initial delay: none (begins 1st epoch)
Initial amount/epoch: 50 ArbiTen
Slope: 10 ArbiTen
Epoch
ArbiTen max mint/epoch
1
50
2
60
3
70
...
...
6
100
ArbiTen Redemption
Initial delay: 7 days (21 epochs)
Initial amount/epoch: 50 ArbiTen
Slope: 10 ArbiTen
Epoch
ArbiTen max redeem/epoch
1
0
21
0
22
50
23
60
...
...
27
100
The redeemable and mintable amounts per epoch and slopes can be reset by admin to ensure the longevity of the protocol.
DAO Treasury
The ArbiTen DAO Treasury is separate from the ETH treasury used for redemption. The ArbiTen DAO Treasury will realize income from various sources:
Pool deposit fees
Minting and redemption fees
Transaction tax from selling ArbiTen
Reinvestment income
The ArbiTen DAO Treasury may be used in several ways:
Buying ArbiTen when below peg (price stabilization fund)
Selling ArbiTen when far above peg
Development and infrastructural costs
Reinvestment
Although the DAO Treasury is not counted as one of the , part of its purpose is for a portion to serve as a price stabilization fund if necessary.
Monetary Policy
General Parameters
Deposit fee: 2% for all genesis pools
Genesis pool emission duration: 12 epochs (4 days)
Iron Initialization Variables
ratio_step = 0.25% (target collateral ratio changes by 0.25% when it adjusts)
refresh_cooldown = 15 minutes (target collateral ratio checks for adjustment every 15 minutes)
price_band = 500 (target collateral ratio adjusts upward if TWAP < 0.995 peg, downward if TWAP > 1.005 peg)
target_collateral_ratio = 100% (at start)
effective_collateral_ratio = 100% (dummy value, changes to actual value)
price_target = 1e17 (0.1 ETH)
redemption_fee = 0.4%
minting_fee = 0.4%
Tomb Bond Redemption
Redemption premium rate has linear scaling between TWAP = 1.0 peg and 1.1 peg
premiumThreshold = 110
premiumPercent = 7000
Boardroom settings
withdrawLockupEpochs = 6
rewardLockupEpochs = 3
boardroomWithdrawFee = 2%
bootstrapEpochs = 0 (changed)
bootstrapSupplyExpansionPercent: 1%/epoch
Other Treasury Variables
seigniorageExpansionFloorPercent = 3500
maxPremiumRate = 0
maxDiscountRate = 0
maxDebtRatioPercent = 3500
allocateSeigniorageSalary = 0.2
Pool Multipliers (Subject to change)
Permanent:
Boardroom pool: stake 10SHARE, earn ArbiTen (no allocation points)
Stake ArbiTen/ETH LP, earn 10SHARE; 10SHAREallocationPoints = 5000; depositFee = 0
Stake 10SHARE/ETH LP, earn 10SHARE; 10SHAREallocationPoints =3500; depositFee = 0
Genesis:
Stake USDC, earn ArbiTen; ArbiTenallocationPoints = 1000; depositFee = 2.00%
Stake USDT, earn ArbiTen; ArbiTenallocationPoints = 1000; depositFee = 2.00%
Stake WETH, earn ArbiTen; ArbiTenallocationPoints = 1000; depositFee = 2.00%
Stake WBTC, earn ArbiTen; ArbiTenallocationPoints = 1000; depositFee = 2.00%
Stake ARB, earn ArbiTen; ArbiTenallocationPoints = 500; depositFee = 2.00%
Stake WHEAT, earn ArbiTen; ArbiTenallocationPoints = 500; depositFee = 2.00%
Transaction Tax
ArbiTen has a transaction tax on selling that depends on the recent TWAP (time-weighted average price) of ArbiTen. The folowing are the selling tax tiers for ArbiTen when the tax is enabled:
TWAP relation to peg
10mb tax rate
0
20.0%
0.5
15.0%
0.6
15.0%
0.7
15.0%
0.8
10.0%
0.9
5.0%
0.95
2.0%
1.0
0.2%
1.05+
0.2%
Receipt Tokens
We have added the ability to grant receipt tokens to depositors in ArbiTen Finance pools. Therefore, when you deposit in the ArbiTen/ETH LP or 10SHARE/ETH LP pools, you will receive a receipt token that you may be able to stake in other pools for additional benefits. This would confer double benefits: you will not lose ArbiTen staking rewards for staking your receipt tokens in other pools. However, do not lose the receipt tokens, as they are necessary to unstake!
Arbitrum Instructions
The gas token for Arbitrum is ETH. It can be bridged using a variety of bridges, including ! However, If you need some initial gas to start using ArbiTen Finance, please contact us via our .
RPC instructions:
Choose "Add Network" in Metamask, and then choose "Arbitrum One." Then you should be set! However, if you prefer manual entry, use the following:
Network Name: Arbitrum One
RPC URL: Choose one from the top of the list at
Chain ID: 42161
Currency Symbol: ETH
Explorer URL: