Understand the Customized Financial Product Open Platform Arche Network in One Article

Mission and Vision

Arche Network is an on-chain customized financial contract open platform developed by the Arche team. We aim to explore a customized non-standard trading market on the blockchain, allowing users to tailor their on-chain financial contracts according to their needs without needing to understand code.

In traditional financial markets, customized financial products require strong institutional backing and high operational costs to function. Behind such strong credit endorsements lies a trillion-dollar financial market that ordinary people cannot access or participate in.

However, through smart contracts, we can customize the financial products we need at an extremely low cost and with very low barriers to entry. Compared to the funding scale and maintenance costs of traditional financial products, the costs of establishing and operating financial contracts generated by smart contracts are almost zero.

Moreover, such financial products have no risks other than those associated with the underlying blockchain system during their operation. Once you set the relevant parameters and deposit the relevant assets, you can wait for the triggering conditions provided by the contract or oracle to complete the financial contract, and leverage the composability with other DeFi contracts to quickly bring these financial products to market.

The transparency, efficiency, low cost, and customization brought by blockchain and smart contracts will meet more specific needs in the financial sector.

We can envision that by lowering the barriers to creating financial products, Lego-style innovation in the DeFi space will flourish in the non-standard trading market. We believe that an endless stream of customized financial products will quickly fill most scenarios in the current DeFi space, aside from AMM. As an important supplement to the DeFi field, we believe our protocol holds immense value.

Protocol Introduction and Application Scenarios

The Arche Network V1 version is a financial contract creation factory that allows you to customize the smart contracts you need through a simple UI and parameter configuration.

At the underlying public chain level, we will initially support the ETH network, and when Layer 2 networks become available, we will promptly support EVM-compatible Layer 2 networks such as Polygon and Arbitrum. For other public chain ecosystems, we will promote cooperation based on user demand to meet more users' needs in the non-standard trading market.

At the asset protocol level, we support ERC20-based token protocols. We also support NFT protocols, including ERC721. If new NFT protocols gain widespread use in the future, we will support those protocols as well.

The architecture of Arche is essentially a delivery contract where the buyer and seller agree on parameters and conditions. Its core technical barrier is the contract factory, which generates an open smart contract address for both parties, continuously creating new smart contracts to implement more complex financial logic.

For example, User A exchanges X amount of aToken for User B's Y amount of bToken at a future date. Users' transactions are completed on-chain, and all data is verifiable on the chain. Meanwhile, during the waiting period for the pledged assets to be delivered, we will also assist in issuing tokens to help alleviate liquidity issues.

We can use smart contracts as counterparties to achieve more complex contract logic. Currently, the types of financial products we can implement include: creating forward contracts, creating standardized futures contracts, creating options contracts, creating swap contracts, creating insurance contracts, creating ERC20/NFT auction contracts, creating crowdfunding contracts, creating initial auction/crowdfunding issuance contracts, and creating initial synthetic asset issuance contracts.

Arche is a Greek term meaning "origin," which was the focus of early Greek natural philosophers. The universe (cosmos) is the product of the differentiation and evolution of the origin, which acts within the universe and gives specific order to all things. In the exploration of what the origin of all things is, four main stages were experienced: water (hydro), fire (logos), being (einai), and atom (atomon).

We have a clear vision and plan for Arche, building an on-chain customized financial contract open platform. The Arche open platform aims to allow users to generate the financial contracts they want without coding, and to find funding, users, and other generated contracts or external contracts to achieve their desired business logic within the Arche ecosystem.

To realize this vision, the platform's roadmap is mainly divided into four stages, continuously launching more diverse financial services.

Arche V1 Version (Spot Delivery Contract)

In the V1 version, to avoid excessive interaction complexity and understanding difficulties, and to make it easier for users to operate and use our contracts, we have simplified the Arche functions into standardized delivery contracts.

In this version, we will also strive to find applicable scenarios to expand the application range of delivery scenarios. Currently, in the planning of the V1 version, we will adapt to scenarios such as betting, auctions, subscriptions, and over-the-counter trading, and expand users' awareness of the Arche contract factory. After users create spot delivery contracts in a user-friendly manner, they can make secondary expansions based on these financial contracts. We will collaborate with IP holders to launch the first NFT financial contract based on Arche.

Arche V2 Version (Margin-Based Forward Contracts)

In the V2 version, we will open more parameter settings and additional contract functions suitable for delivery contracts based on the V1 version. We hope to further expand Arche's market categories and scenarios for customized derivatives through the contracts in this version.

In addition to the functions of the V1 version, it will cover a series of scenarios including customized delivery, swaps, forwards, futures, options, and insurance. It will also leverage other functional contracts to assist in the subscription, auction, synthesis, and other scenarios of derivatives, creating a full series of customized derivatives.

Arche V3 Version (One-Stop Service for Financial Contracts)

In the V3 version, we will open more additional support based on the V2 version. On the foundation of traditional customized contracts, we will introduce ecological support.

This will allow users to not only meet their needs at the contract level but also quickly achieve their goals at the business level. Arche will establish a capital pool to facilitate the rapid transaction of users' derivatives, while also supporting transactions between capital pools using the Arche protocol and utilizing auxiliary contracts to distribute completed derivatives.

Our ecological support includes not only establishing capital pools to meet users' hedging needs but also supporting users in developing their own or customized front-end templates to guide users in completing business within their traffic domains. At the same time, users can freely distribute their derivative contracts across various platforms, thereby quickly achieving transaction goals. This will make Arche the preferred platform for users' customized derivatives.