ARCx
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Introducing ARCx
Developers
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FAQs
What is ARCx?
ARCx is a decentralized scoring protocol that powers on-chain identity and credit-score based borrowing. Our goal is to solve one of the most critical issues underpinning web3 - on-chain reputation. This issue impacts a number of distinct areas, cutting across lending markets, governance, airdrops, loyalty program design, DAO tooling and more.
ARCx will serve web3 by offering a trust-less way for participants to build a reputation, and a mechanism for other protocols and platforms to identify, reward and further incentivise good reputation
We believe that by becoming the “reputation layer” for Web3, we can spur the next wave of product innovation in DeFi, while creating a fairer and more inclusive experience for the next generation of DeFi users
What problem is ARCx solving?
Decentralized finance (DeFi) and the Web3 movement more broadly is a market based on pseudonymity, where users and their interactions with smart contracts and others are abstracted away to transaction hashes and wallet addresses. In response to pseudonymity, the protocols that pioneered the DeFi movement were designed in a completely permissionless way that avoided the need to truly understand who their users were. While the current generation of DeFi applications are indeed efficient and scalable, the design of smart contracts have never properly made use of data in the same way that personalization transformed web2 technology companies over the past decade. In turn, this lack of meaningful personalization has left enormous unrealised value across the industry.
- In lending markets, the lack of understanding around creditworthiness has meant borrowers need to provide well over $1 in collateral for each $1 borrowed, reducing capital efficiency and limiting the overall size of the industry.
- In liquidity markets, the lack of understanding around user behaviour forces protocols to arbitrarily offer high mining incentives to “rent” liquidity from anyone, but which often end up being in vain as mercenary capital exits their pools once incentives are reduced.
- In the design of Airdrops (a major customer acquisition channel for new protocols), the lack of understanding around users exposes the protocol to sybil attack, which can lead to the misallocation of tokens in the order of tens of millions of dollars.
- In the design of loyalty incentives (a major community engagement and retention tool), the inability to easily reward ‘role-model’ token holders (e.g. those who regularly vote in snapshot proposals, hold the governance token, and frequently use the product) means community managers are unable to incentivize good behaviour
In order to deliver a personalized experience in DeFi, protocols need to leverage on-chain reputation, but the technical challenges involved have historically been prohibitive. It involves ingesting and processing immense quantities of data, translating this for each user into quantified reputation across its many contexts (e.g. from credit worthiness to yield farming reliability), and then finally making this data accessible, trustlessly verifiable and cost-efficient to reproduce on an ongoing basis.
Since on-chain reputation is not being used to design better products, there is a limit in what experiences can be delivered in Web3, and there is no incentive for users who act in good faith and build good reputations.
How can I get involved in ARCx?
- Join our weekly community calls on Discord (Mondays at 9PM UTC)
What is the ARCX token contract address?
0x1321f1f1aa541a56c31682c57b80ecfccd9bb288
Where can I purchase ARCX tokens?
Where can I find the roadmap?
Last modified 4mo ago