# AraFi: The Omnichain Meta-Protocol AraFi is a sophisticated omnichain governance aggregator designed to optimize the potential returns and governance capabilities of DeFi stakeholders, promoting financial security, stability and scalability. The platform offers the opportunity to combine governance authority and maximize rewards through the liquid staking of locked/vote escrow tokens. These features enhance the liquidity of veTokens/illiquid tokens, which otherwise may not be easily tradable on their respective native chains. Using Ulysses and LayerZero the ability to enhance governance and utility token liquidity will translate into a wider access to yield opportunities across multiple chains. The protocol will utilize a rolling governance function to effectively scale with its user base and accumulated governance assets. This approach guarantees a just and democratic governance system that reflects the shared interests of a growing community. With the goal of maximizing liquidity and rewards for its users, while also consolidating governance under the ARA token, AraFi aims to become the dominant hub for projects built on veToken and utility token incentive systems. This ambition empowers us to broaden our horizons, allowing for integration with a multitude of participants within the ecosystem. In doing so, we aim to generate substantial value not only for our token holders, but also for the broader web of involved participants.
## Key Features and Benefits: * Customized tokenomics and dynamic distribution that grows with the protocol, optimized for sustainability & longevity * Capped Token Supply * Layered incentive systems using acquired asset strategies to focus on native token emission-less functions * Vote escrow token locking & governance * Liquid Staking for Partners * Modular ability to grow, adapt and change with the DeFi landscape * Direct solutions for long term inflation control \ \ *Decentralized Finance protocols are experimental and should be considered high-risk. Please do your research and read all of our documentation before investing.*
# Understanding the Basic Architecture The architectural design of AraFi involves at its core the implementation of liquid wrappers to accrue desired governance tokens. These assets will be put to work by the ARA Treasury to optimize returns and leverage their efficient economic models to drive liquidity to desired pairs. Our long term intention is to accrue revenue for ARA Holders. Gaining access to these resources will allow ARA to implement: \- Farming Boosts that provide greater LP farming rewards \- Adding an extra incentive layer to improve efficiency and increase holder profit potential. \- Providing strategic influence on the underlying governance structure for our holders. # How AraFi Works
# Understanding our Protocol We offer a range of governance aggregation and liquidity-focused products. The main method for governance "black holing" is through the minting of aAssets. Users can deposit tokens into AraFi, which locks these assets forever in their underlying protocol. AraFi returns a tokenized version of the assets as an aAsset. Various boosted farms will be implemented. The product range will expand as key metrics are achieved. Lastly we also feature vlARA, which is a critical component of our ecosystem and will allow for the future decentralized governance of the protocol and the distribution of protocol earnings.

# aAssets (Ara wrapped assets) Our main method for governance “black holing” is through the minting of aAssets. Initially the protocol will focus on the following assets: * Hermes and veHermes * Maia ## Minting aAssets * Users may deposit Hermes, bHermes, or Maia into AraFi which will then lock these assets forever as bHermes, and vlMaia respectively. * The protocol returns a tokenized version of the assets as an aAsset ie. aHermes, and aMaia. * bHermes will be converted to aHermes at a variable rate determined by market conditions. ## Staking aAssets * Through aAssets, users can gain exposure to maximum-locked rewards without the need to lock their tokens. By utilizing a liquid staking derivative, users can easily liquidate their aAsset position for the corresponding underlying token at any time. *As the representative token is LP bound there may be variance from a 1:1 value.* * Users can stake their aAssets on our platform to receive the maximum-locked fees and single-stake rewards of their respective platforms, as well as ARA emissions.
## aAssets Liquidity Pool * We will initially seed the aAssets liquidity pools, in order to make these assets liquid from the get go. * Part of the fees the protocol charges on yield will be directed towards bolstering these pairs. * Bribes will also be utilized as a cost effective method to build liquidity and direct Hermes emissions to these pairs. # Vote-locked ARA (vlARA) We're working on a new vlARA model. \ \ Stay tunned!
[Governing the AraFi Protocol](/governance/governing-the-arafi-protocol) # Governing the AraFi Protocol Token Holder Rights and Influence We're working on a new governance model.. stay tunned. Concurrently, the team plans to develop a custom gauge system. This system will initially be used by ARA lockers to direct ARA emissions towards specified pools. Looking forward, we envision an inclusive governance model. As such, we plan to broaden the scope of governance. This expansion will take AraFi's decentralization ethos a step further, aligning it with the broader vision of a fully community-governed platform. # Ara Distribution Exploring AraFi’s Economic Model ## Token Distribution Simplified Initially, ARA is used to bootstrap the system and incentivize early users and adopters. Over time, as the project matures and the user base grows, the aim wll be to transition towards a system that relies less on the emissions of the native token.
Ara's total token supply is 1,000,000 of which 125,000 are already in circulation.\ The remaining 875,000 supply will be distributed as follows:
1. Liquidity Mining 50% (time variable) 2. Liquidity 9% 3. Marketing 5.5% 4. Treasury 25.5% 5. Team 10% (3 year vesting)\

# Liquidity Mining (50%) We want to emphasize that despite the significant allocation to liquidity mining, it's inherently linked to the overall success and growth of our project. \ \ This means that emissions of ARA aren't merely an expenditure but a strategic investment into the growth of our platform. As we distribute more ARA, it's expected that the Realized Future Value (RFV) of our treasury will grow in direct proportion.\ \ In essence, every ARA token emitted contributes towards fortifying our treasury and consolidating the project's financial stability. This dynamic interplay between ARA emissions and treasury growth forms a virtuous cycle that drives the long-term sustainability and success of our platform.\ \ Liquidity Mining emissions are closely tied to the Total Value Locked (TVL) we amass. The ARA token plays a crucial role in "boosting" the yield earned on the base layer. This provides the potential the more ARA tokens we emit through liquidity mining, the more tokens we are effectively "blackholing". \ \ \*This is only true in the case that liquidity mining is higher value than bribing\* Simultaneously, the rapid accumulation or "blackholing" of governance tokens accelerates our ability to leverage the base layer yield boost offered by holding these tokens. This approach allows us to optimize returns and drive liquidity more efficiently. **The liquidity mining program accounts for 50% of ARA token supply and is made up of three components:** 1. **aHermes and aMaia Staking** Converting Hermes and Maia is the most important feature of our ecosystem for generating long-term value for ARA. Thus, it is important for us to allocate an adequate portion of our emissions to aHermes and aMaia stakers. 2. **LP staking** To ensure AraFi’s success, it is crucial to establish liquid capital markets that enable users to enter and exit positions seamlessly. This is particularly relevant for our diverse liquidity pools, comprising aHermes-Hermes and aMaia-Maia, Ara-wEth. \ \ 3\. Bribing \ \ We will consistently bribe on the Hermes platform and wherever else in the future applicable, to further drive incentive value to our pairs at a lower expense.
# Liquidity (9%) Our strategic liquidity emissions are flexible and geared towards supporting expansions to new exchanges or blockchains, benefiting our holders. The precise number of tokens used will depend on specific needs and the token price at the time of expansion. **Allocating 9% of the ARA token** for future chain expansions is important to support the project's growth. As the project expands to new chains and supports additional protocols, having a reserve of tokens can help fund the necessary liquidity provision and incentivization programs to ensure the new chains and protocols have a healthy trading environment.
# Marketing (5.5%) Marketing forms a consistent, ongoing cost for AraFi. We are considering "ambassador" style marketing, coupled with planning key events around our liquidity expansion timelines. These events are likely to align with our products reaching new markets, thereby maximizing visibility and user engagement.\ \ The emissions can be divided into two subcategories:
**1. Content Creators and Contributors**\ \ By providing rewards to those who contribute to the project's ecosystem, the project can foster a sense of ownership and belonging among its community members, encouraging them to contribute their skills and knowledge to the platform. This will result in a more robust ecosystem and a more engaged and loyal user base, leading to the platform's long-term success. \ **2. Airdrops**\ \ Airdrops can help us distribute tokens cost-effectively to a large audience, attracting new users and expanding our token's presence across multiple blockchains. This approach diversifies our user base and expands our reach.

# Treasury (25.5%) The allocation for the treasury, forming **25.5% of the total token supply**, is situational and multifaceted. The primary purpose of the Treasury is to fund initiatives that can significantly contribute to the project's development, community engagement, and strategic partnerships. The token emissions towards the Treasury play a significant role to ensuring financial resilience, development costs, community proposals, and unforeseen requirements.
1. **Community Proposals** A segment of the treasury serves to back community-led proposals, sparking a sense of involvement and encouraging active participation. This not only harnesses the creative potential of our community but also reinforces their stake in our shared success. 2. **Development Costs** A share of the treasury resources is dedicated to defraying the cost of expanding our product suite. By fueling innovation and meeting the evolving needs of our user base, we pave the way for greater adoption and increased engagement with our platform. 3. **Reserves** To fortify our financial resilience, a strategic reserve is set aside from the treasury. This allows us to navigate unforeseen events or market volatility with ease, ensuring our obligations can be met without resorting to external funding. 4. **Advisors** A strategic allocation from the treasury is reserved for securing expert advice and industry insights. Advisors, with their wealth of experience and extensive networks, will play a pivotal role in propelling our project towards its growth and expansion milestones. 5. **Treasury Swaps** An allocation from the treasury is specifically earmarked for strategic partnerships, embodying our commitment to forging alliances and facilitating collaborations. By lending support to other protocols, we not only fortify our own ecosystem but also augment our reach and the richness of our value proposition. 6. **Bonds** As part of our growth strategy, the treasury will issue bonds to grow our liquidity or asset base. Investors will be able to purchase ARA at a discount by depositing selected assets into our protocol.
# Team (10%) A maximum amount of 10% of the total ARA tokens are destined for present and future team payments. This amount will be vested linearly over a three year period.
Ensuring the team is properly compensated is crucial to maintaining productivity, motivation, and engagement. This structure ensures that the teams' interests are aligned with the project's success.
# Ara Emission Schedule \*\*Please note that Liquidity Mining emissions will only enter circulation in conjunction with the TVL growth.\ \ Meaning that these are only projections in optimal environments. Sub optimal environments may see very minimal inflation vs the given Emission Schedule # Protocol Fees Protocol fees stand as one of the most critical components in accruing value for our vlARA lockers and ARA holders. They not only contribute to the overall financial health of the ecosystem but also form an integral part of our value proposition. Rather than merely serving as a revenue source, the majority of the fees generated are strategically reinvested into our protocol. This reinvestment strengthens the stability and resilience of our system, while simultaneously rewarding the various ecosystem participants. It's this efficient cycle of reinvestment and reward that propels our platform forward, reinforcing our commitment to create a symbiotic environment where both the protocol and its participants benefit and thrive. # aAssets Currently, no fees are charged on the underlying yield generated by the assets held by the protocol. These fees are dynamic and subject to adjustments to maintain competitiveness in a rapidly changing market environment.\
# DApp Visit our DApp at # Contracts
FunctionAddressAddress
ARA Token0xd8E9e0Ed6F6782CbfEE67A1c25C5E514901f4d890x85b70D7e56BC8C4dDD7a5BB30E59b223DA383E34
ARA-wEth LP0xc8db72720bc3aa56f56ff3dc42db5237d24ae2c10xc8db72720bc3aa56f56ff3dc42db5237d24ae2c1
Hermes Wrapper0xd5Bf08e15A795De5092C20dFe346BC7B5Dffa9720x82524ebF9e5e0D793B4Dd3E920Ab430aC94c5F3B
Maia Wrapper0x25aC1fE9F1c7f043969F1F912bE0506db4C2e52B
aHermes StakerTBD0xC226ccc56bb52CACd25d22D3b5c85e9f8278e35B
aMaia StakerTBD
AraLockerTBD
# Audit Our ecosystem audit process was conducted between May 16th 2023 and August 29th 2023 by the Blaize Tech team whom we'd like to thank for their availability, patience and professionalism. Auditor's Website: X Post Reference: TBD Audit Report: TBD # Socials These are our only official communication channels X: [https://x.com/AraFiEco](https://twitter.com/AraFiEco) Medium: [https://ara-fi.medium.com ]() Discord: