Archly Finance Tokenomics



Archly Finance uses two tokens to manage its utility and governance:

  • $Arc — ERC-20 utility token of the Archly ecosystem
  • $veArc — ERC-721 token in the form of an NFT (non-fungible token)

$Arc is used for rewarding liquidity providers through emissions and to pay for whitelisting tokens (on DEX and Rainbow Road), sending messages across the Rainbow Road, and more.

$veArc is used for earning bribes and fees. Any $Arc holder can vote-escrow their tokens and receive a $veArc (also known as veNFT) in exchange. Additional tokens can be added to the $veArc NFT at any time.

The lock period (also known as vote-escrowed period, hence the ve prefix) can be up to 4 years, following the linear relationship shown below:

  • 100 $Arc locked for 4 years will become 100 $veArc
  • 100 $Arc locked for 1 year will become 25 $veArc
  • 100 $Arc locked for 1 month will become 2.05 $veArc
  • 100 $Arc locked for 1 week will become 0.48 $veArc

The longer the vesting time, the higher the voting power (voting weight) and rewards the $veArc holder receives.

ve(3,3) Mechanics

Archly Finance mechanics reflect a combination of two DeFi concepts:

  • Vote-Escrow — first introduced by Curve to strengthen incentives for long-term token holders
  • Staking/Rebasing/Bonding or (3,3) game theory — designed by Olympus DAO

Combined, the ve(3,3) mechanism rewards behaviors correlated with Archly's success, such as liquidity provision and long-term token holding. Liquidity providers receive $Arc emissions, and $veArc holders receive protocol fees, bribes, and rebases.


Below, we will walk through the components of the mechanism in order to explain how it helps the incentives flow to the most valuable of the ecosystem liquidity pools.


  • Controlled at the chain level.

  • Target a lock rate of 80% across all chains.

  • Existing Arc and veArc must be moved via the Rainbow Road from other chains to the new chain.

  • A maximum of 25M Arc will be minted to provide liquidity for new Arc-NATIVE pools on the new chain (20M Arc max) and cover prior team obligations (5M Arc max for this category).

  • Can only start on chains that have obtained 5% of the global total supply of Arc on chains with emissions enabled.

  • Will be reduced on all chains where emissions are enabled to maintain a consistent emission schedule.

$veArc holders receive a rebase proportional to epoch LP emissions and the ratio of $veArc to $Arc supply, thus reducing vote power dilution for $veArc!

$veArc supply plays a crucial role in determining the weekly LP emissions. The more $Arc that is locked into $veArc the lower the amount of the distribution of $Arc during the next week of LP emissions. Said another way, if 100% of $Arc is locked up as $veArc, then the weekly LP distribution of $Arc will be low (approaching 0 $Arc). If 0% of $Arc is locked up, then the weekly LP distribution of $Arc will be high. As there is no max supply of $Arc, this system allows the $Arc holders to determine how much inflation is introduced into the ecosystem, thus making engagement critical in keeping the supply of $Arc in balance.

Gauge Voting

$veArc holders decide which liquidity pools receive emissions in a given epoch by voting on their preferred liquidity pool gauges. $Arc emissions will be distributed proportionally to the total votes a liquidity pool receives.

In return, voters receive 100% of the trading fees and bribes collected through the liquidity pool they vote for.

Voting for gauges, or in fact any action related to the $veArc NFT is allowed only after one week of the previous vote being cast. This means that calling Voter.reset() (used for resetting an NFT vote state and usually required before merging it into another $veArc NFT) or Voter.poke() (used to re-cast the votes for the current epoch in order to direct emissions and earn bribes) are not available until the one week vote lock has expired.

While this is not ideal, it does make the protocol safer against potential exploitative behaviour.


There are 4 types of rewards on Archly Finance.


Represent $Arc distributed to liquidity pool stakers. The amount of $Arc distributed towards every pool is proportional to the voting power received from the voters every epoch.

These rewards are streaming and are available for claim as these accrue.


Represent liquidity pool trading fees distributed to voters in pool tokens ( e.g., if the pool is vAMM-Arc/USDC the distributed tokens are $Arc and $USDC).

The fee rewards are released and claimable in the next epoch (Thursdays at 00:00 UTC) proportionally to the voting power cast by a voter and the accrued amount of weekly trading fees. They do not need to be claimed each epoch.


In addition to the fees, liquidity pools allow external rewards from anyone (known as bribes). Bribes can be added to whitelisted pools and are distributed only to voters on that pool, proportionally to their share of pool votes. They do not need to be claimed each epoch.

These rewards are available for claim in the next epoch (Thursdays at 00:00 UTC) after the creation of a bribe for a pool, and are proportional to the voting power cast by a voter ($veArc).


Represent $Arc distributed to $veArc holders in order to reduce the voting power dilution.

These rewards are available for claim each week in the next epoch (Thursdays at 00:00 UTC) proportionally to all $veArc holders.

Rewards claim

Rebase rewards claim is available one full epoch after tokens are locked.

An example of bribes, voting, and rewards claim timeline:

  • A new epoch starts Thursday (00:00 UTC)
  • Bribes are deposited at any point in the epoch
  • Voters vote for their preferred pools
  • Voters claim bribes (incentives) and fees for their pool in the next epoch (after Thursday at 00:00 UTC)
  • Liquidity providers can claim their Arc emission any time during the epoch


While Archly DEX and Rainbow Road supports permissionless liquidity pool, gauge creation, and token transfers these can only include whitelisted tokens.

Partners can pay the whitelisting fee in order to whitelist their projects token on Archly. The Arc paid for whitelisting is burned.


Requirements for whitelisting are critical to ensuring that the protocol cannot be exploited by actors attempting to game emissions.

To support the health of the protocol and ecosystem, the admin (a Curve-esque Emergency DAO) will have the right to disable any hostile gauges.