Your Estimated Collateral
Where does the yield come from?
OUSD is a fully collateralized yield bearing stablecoin. It generates yield through automated, on-chain, blue-chip stablecoin strategies such as Convex. It's governance is entirely decentralized.
This Archimedes strategy borrows up to x10 OUSD based on your collateral amount. Allowing you to capture yield on the total amount. OUSD's base rate fluctuates creating an opportunity for even higher yield during your position lifetime.
Yes. During a Leverage Round, the cost of Leverage (lvUSD) starts higher and then decreases (with every block) over a period of days.
This enables you to wait until the price drops to a level you prefer and then open your position. Of course, there is a risk that all the leverage will be taken by other users before it reaches that level. You can learn more about the Leverage Price here.
Leverage (lvUSD) is scarce and so we run Leverage Rounds when it becomes available. You can open a position during these Leverage Rounds and the price you pay (in ARCH) for your position leverage (lvUSD) is determined by our Leverage Rounds auction style mechanism.
The price of leverage starts higher and lowers over the remainder of the Round, either until all leverage is taken or the Round time period ends. lvUSD is priced and quoted in ARCH tokens. For example: 1 ARCH = 6000 lvUSD.
You can learn more about our Leverage Rounds here.
Archimedes does not have a liquidation mechanism. In addition, the Archimedes team conducts strict due-diligence on choosing the underlying assets that can be used within our positions, such as OUSD.This is to ensure that the assets are battle-tested and have a lower risk of depegging.
In the unlikely event that the underlying asset price moves significantly or depegs and your position value can not repay your leveraged debt, your position will remain intact. Simply, you won't be able to unwind the position until the value of the position increases (through earning interest or asset price recovery) to match the debt. But you can also sell the position NFT on a marketplace such as Opensea.io while the position is locked, potentially at a discount.
You can learn more about how we approach risk here.
Yes, your Net. APY is determined by the base rate of the underlying asset (such as OUSD). These asset yields are not fixed and historically may have had higher rates than the current rate.
Of course, past performance is not a predictor of future performance and the asset base rate could also drop. But we would encourage you to look at OUSD's historical rate to learn more about its movements over time.OUSD.com.
Leverage Fee (in ARCH Token) - You don't need to own ARCH tokens to pay this fee (it will be taken from your deposit). This is an upfront fee to access the leverage (lvUSD) for your position's duration. This fee will be higher at the start of Leverage Rounds and decrease over the duration of the Round. The fee is collected and sent to the Archimedes Treasury to reward Liquidity Providers.
Origination Fee (Collateral Asset) - When a user Opens a Position there is a one time upfront origination fee applied. This fee is applied to the leverage amount (borrowed amount) and is collected from your collateral asset (OUSD). The fee is sent to the Archimedes Treasury to be used to reward Liquidity Providers.
Performance Fee - All our "Est. Net APY" yields that we quote across our platform already deduct the performance fee in the calculation. And therefore, you don't need to adjust your APY projections for this Performance Fee. This fee is 30% and it only applies to the Interest Earned on your position. If you do not earn interest for any reason you will not pay any performance fee.
You can learn more about our fees here.