an overview of the different parties in the Arkadiko ecosystem
We identify the following stakeholders within the Arkadiko protocol:
Vault Owners
Vault Owners collateralize their assets in a Vault, mint USDA and enjoy the increased stablecoin liquidity against their collateralized asset. They are responsible for the health of their Vault by keeping it sufficiently over-collataralized in order to avoid Liquidation.
External Liquidators
External Liquidators are professional software entities that scan the protocol for tagged Vaults that need to be auctioned off. They repay the debt of these Vaults in order to buy the collateral at a discount.
Liquidation Pool Depositors
As an alternative to running your own external software scanning for liquidation, you can deposit USDA into the Liquidation Pool, earn DIKO incentives and participate in collateral auctions where you can receive discounted collateral.
Stacks DeFi protocols
Other protocols within the Stacks DeFi ecosystem can build on top of Arkadiko by implementing USDA as a representation of stable USD value.
Arkadiko Swap Liquidity Providers
Arkadiko Swap is the primary mechanism to exchange the tokens supported by the Arkadiko protocol. Next to trading fees, Liquidity Providers (LPs) also receive DIKO Liquidity Mining rewards proportional to their share of the pool. To see which pools are supported and their respective rewards, check out the section on Reward Sinks.
DIKO Security Module Stakers
Users who stake their DIKO tokens in the Security Module receive rewards proportional to the size and nature of their committed tokens. By staking, they are exposing up to 30% of their DIKO to an emergency backstop mechanism to be used should the protocol create a bad debt. In such a case, governance can decide to sell off the staked DIKO to cover the debt.
They are also assigned a weight in the Governance Module of Arkadiko, allowing them to vote on issues concerning the protocol.