Archer DAO tackles one of the most criticized problems facing the DeFi Market Today: The one of opportunistic bots and front-running programs that lead to rising gas costs in networks like ether.
This tactic is known as “Miner Extractable Value” and is used by a proof-of-stake miner’s ability to place transactions into each and every block. This allows miners to make profits at the expense of users, which often results in an overall slower network and high GAS charges.
Archer DAO has a solution for this. The project brought the innovative “Trader Extractable Value” concept to market, which further builds on the existing benefits of Archer Swap (protecting users from front-line bots, no cost of failed transactions, and canceling trades without Costs).
The Archer TEV process flow.
🏹We are the first to bring a true TEV platform to market 🏹
Our ethos: Protect traders from unnecessary fees or exploitation, and redistribute any value created by that trade back into the ecosystem.
LIFE NOW pic.twitter.com/986cUGvh8y
– Archer DAO (@Archer_DAO) June 9, 2021
At its core, the Archer TEV works in a simple way: it enables traders to earn ARCH from their usual trading activity through Archer Swap, which is an income-generating function as opposed to a loss-preventing function.
This is how Archer TEV works
According to a blog entry, this is made possible by optimizing the many arbitrage opportunities traders create after their large on-chain trades. “When traders make large swaps, they open up great arbitrage opportunities. Usually arbitrage bots capture this value, ”explains the team.
It adds, “With Archer Relay, the trades are private, so the Archer Network instead captures this value and distributes it to traders.”
This is how Archer TEV generates income – by protecting and reversing large trades like this: 529,000 UDSC -> 7.8 million SWAGhttps: //t.co/60DlZ8i10f pic.twitter.com/ti7w0Lj3Iu
– Archer DAO (@Archer_DAO) June 12, 2021
The team gives another explanation of how TEV works:
- A trader buys a token worth $ 10,000 from Archer Swap (using the Uniswap liquidity pool).
- This creates a temporary imbalance in the Uniswap token pool. The token price on Uniswap is higher compared to other markets.
- Since Archer Swap was used, the transaction is sent to the Archer Relay.
- Archer’s returning bots are privately informed of the arbitrage opportunity and run when they are profitable.
- The value captured from this arbitrage transaction is sent to the Archer Treasury Department, where it is later distributed to Archer Swap users.
To encourage trading and participation, a six-week buyback and rewards campaign for $ ARCH and Archer Swap was launched in early June and is currently in its second week. Trader, what are you waiting for?
Archer TEV is currently distributing $ ARCH tokens to all merchants making a transaction on Archer Swap. Last week, users received an average of 66% off their trading fees!
Don’t miss out – only 5 weeks of bonuses left!
Don’t Make Bot Owners Rich – POWER TO THE TRADERS pic.twitter.com/xlRsM6Mece
– Archer DAO (@Archer_DAO) June 15, 2021
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