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veARKEN

Stake veARKEN & earn profit sharing
To streamline operations and optimize resources, there will be strategic adjustments as follows:
Starting 12 Jan 11:00 UTC, Arken Finance will be canceling the incentive pool on Arbitrum Chain. This includes the cancellation of veArken on Arbitrum.
  • All locked veArken will no longer be eligible to receive rewards.
  • Users with locked veArken can withdraw their veArken without incurring any penalties from 13 Jan, 0:00 UTC
More details on our Medium.
Ticker: veARKEN
Chain: Arbitrum
veARKEN is an escrowed governance token. The only way to receive veARKEN is by converting ARKEN in exchange for veARKEN.
While not a usual tradable token, veARKEN holders can enjoy benefits such as profit sharing and participating in the future protocol feature and governance.
  • Profit sharing: ARKEN holders can choose to exchange their tokens to gain veARKEN. veARKEN can be staked to earn rewards from the platform profit sharing for each Epoch.
  • Governance participation: veARKEN holders can partake in governance or future protocol proposals and features.

Converting ARKEN to veARKEN

ARKEN holders can convert their tokens to receive veARKEN at a 1:1 ratio anytime. The same concept applies to the redemption process to convert veARKEN back to ARKEN.
Please note that veARKEN tokens cannot be traded, transferred, or used by any other means than staking on Arken Finance.

Profit-Sharing Mechanics

Staking

You can stake your veARKEN to earn platform profit sharing in the form of USDC. The longer the lock period chosen, the higher the staked power, hence the higher profit share they can potentially earn, with rates of up to 40%.
The stake period can be up to 2 years, the stake period and veARKEN amount can be increased and adjusted at any time. Keep in mind that every time you increase veARKEN amount or adjust the stake period, the staking countdown will be reset.
Staked Power Multiplier
  • 2-year (104 epoch) = x1 Staked Power
  • 1-year (52 epoch) = x0.5 Staked Power
  • 6-month (26 epoch) = x0.25 Staked Power
  • 1-month (4 epoch) → = x0.039 Staked Power
Important Note:
  • Your staked veARKEN will automatically unstake within 1-2 weeks after the lock duration end.
  • Please note that you cannot stake veARKEN beyond the pool maximum capacity at 100,000,000 veARKEN.
  • There will be a 50% penalty in case of early withdrawal.

Reward Epoch Cycle

The reward is calculated based on the platform’s fee collection during the 2 weeks preceding the epoch start. Please note that the reward for each epoch is estimated and subject to change based on the fee collection on Arken.

Epoch

The epoch duration is set to 1 week, which means the staking rewards will be distributed once every 7 days. You will continue to receive the rewards until the staking period ends.

Reward

How we calculate the reward

r=R×wi=1nwir = R \times \frac {w}{\sum_{i=1}^n w_i}
Term
Definition
rr
Rewards that the user will get at the end of each epoch
RR
Collected profit from protocol in this epoch
ww
Staked power calculated from the individual user
i=1nwi\sum_{i=1}^n w_i
Sum of all staked power in this epoch
nn
The number of stakers

Display Metrics on Staking Page

Metric
Definition
% APY
The annualized reward if you stake with $100 worth of veARKEN with the same average lock time
Average Lock Time
Average lock time from all users staking veARKEN in the profit-sharing pool.
% APY Formula % APY = Rewards from average 7 previous epoch x ( ( 100 / ARKEN Price ) / Current Total Staked veARKEN) x 52

Boost Reward Cases

The longer the duration you choose to lock veARKEN, the higher the staked power
For example, If the % ARP is at 52% and the average lock time is 6 months
If User Tom stakes 1,000$ worth of veARKEN with 6 months locked, then the rewards would be 520$ annualized (10$ of this epoch = 520$ / 52 weeks)
If Tom adjusts the lock duration to 12 months (instead of 6 months) with the same 1,000$ worth of veARKEN, then the rewards would be 1,040$ annualized (20$ of this epoch). This is because Tom chose to lock veARKEN 6 more months (100%) than the average locking period of veARKEN from others in the pool, so Tom will get double staked power and double reward.

Future plan

ARKEN and veARKEN are integral components of our platform's long-term expansion strategy. They will be integrated with future protocols to support the ecosystem, enhance token utilities, and provide users with distinctive returns in the upcoming project called "Trustless Fund Management".
By locking ARKEN tokens into veARKEN, users can gain the right to vote on the platform's strategy vault, as well as earn fees and bribes from the vault they voted for.

Governance

More details coming soon.