FRAX Partnership Sees Aark Digital DEX Volumes Climb

Aark users can now utilize FRAX as an LP asset on the rapidly growing Arbitrum Perpetuals DEX

Perpertuals DEX platform Aark Digital took a significant step forward last week by integrating FRAX as collateral for users of the platform. This move opens up new opportunities for liquidity providers, yield seekers, and the broader Arbitrum ecosystem, utilizing one of DeFi’s most reputable assets to unlock increased value for FRAX holders.

The “leverage anything” perp DEX will soon also integrate SFRXETH and other assets in a path to become a market leading DEX; sitting in the top 3 on Arbitrum in terms of perpetuals volumes last week, Aark is quickly becoming an attractive place for traders to make their plays.

Unique Capital Efficiency

The operational model of Aark Digital is simple: LPs deposit capital into a pool which traders can access for their transactions, while also earning fees from these interactions. Market Makers play a vital role in managing risks for LPs and ensuring a balanced and efficient market ecosystem through arbitrage opportunities.

But what sets Aark apart from other perp DEXs is its unique single-sided LP feature, which allows stakeholders to take exposure to just one asset while earning yield on it. Further, by introducing 'leveraged LP' the Aark team has enhanced capital efficiency to unprecedented levels seen in DeFi.

The current 30% APR for single-sided LPs using Aark on Arbitrum is already the highest in the space but, with the recent integration, FRAX holders can also access this rate and potentially even earn up to 60% APR with up to 2x Leveraged LP.

The “Sticky Yield” Flywheel

The collaboration between Aark and Frax creates an exciting flywheel mechanism: Higher Total Value Locked (TVL) attracts more traders, leading to increased trading volumes and fees collected. This fuels the 'sticky-yield' concept introduced by the team behind Aark; as more TVL is attracted, it sets off a self-reinforcing loop of growth and rewards that benefits not only Aark Digital and FRAX but also the entire Arbitrum ecosystem.

The Aark team aims to reshape the DeFi landscape and create a strong ecosystem for sustained growth. By embracing FRAX, Aark invites stakeholders not only to switch to Arbitrum but also encourages them to stay and contribute to the ecosystem's development.

Support from Leading DeFi Funds

Aark Digital was announced recently as one of three recipients of funding from OKX Ventures, as the prominent fund continues to look for promising DeFi products and platforms to support.

The investment arm of OKX is known for its long-term structural value investments and this investment in Aark joins that of others such as Delphi Digital, signifying confidence that the decentralized perps platform could have what it takes to lead the way into the future of DEX trading.

“We are pleased about the innovations Aark brings to the ecosystem as a power user of decentralized perpetual trading platforms ourselves.” mentioned Juan David Mendieta, Co-founder and Chairman of Keyrock in a recent article highlighting Keyrock’s decision to invest in Aark Digital’s recently closed seed funding round. “We believe it can be a potent vehicle for base yield in the industry and are excited to see what the team can achieve.”

Follow Aark Digital on Twitter, subscribe to their Medium blog and trade on their innovative perpetuals DEX over at https://app.aark.digital/.

This post was authored by an external contributor and does not represent Benzinga's opinions and has not been edited for content. This contains sponsored content and is for informational purposes only and not intended to be investing advice.