Arkstar: An application that implements yield generation and staking functions based on the ve(3,3) model on the BRC-20 protocol

Author: Arkstar

BRC-20 Industry Background

In the development of Ordinals, we have made significant progress. From running full nodes to simply clicking a few buttons to inscribe, our developers have played an important role in making Bitcoin inscriptions easier. With the continuous development of BRC-20 tokens, the introduction of staking functionality has become imperative. So, how will BRC-20 tokens implement staking functionality?

Brc chain biso ecosystem's first IDO project focuses on Arkstart, which is leading a new era of BRC-20 token staking through our innovative blockchain project. A groundbreaking staking feature has been introduced on the BRC-20 protocol. This innovative feature, based on the VE (3,3) model, aims to provide users with opportunities for returns beyond transactions while ensuring security, efficiency, and decentralization.

Pain Points of Traditional Staking Models

Traditional BRC-20 staking models have some pain points, including a lack of long-term participation incentives, unstable liquidity, and concentrated risks. These issues limit user participation and the sustainable development of the staking ecosystem.

Lack of long-term participation incentives: Traditional staking models do not have effective incentive mechanisms to attract users for long-term participation. Stakers may lose motivation due to a lack of continuous returns, leading to unstable liquidity and difficulty in sustaining ecosystem development.

Unstable liquidity: Traditional staking models may result in staked assets being locked and unable to be quickly withdrawn. This limits users' flexibility when they need funds, making liquidity unstable.

Concentrated risks: In traditional staking models, a few large holders or institutions may concentrate a significant amount of staked assets, impacting the stability and sustainability of the entire ecosystem. This concentration of risk may lead to potential unfairness and instability.

Arkstart's VE (3,3) Model Solution

To address these pain points of traditional staking models, Arkstart has introduced the VE (3,3) model, bringing the following advantages and solutions:

1. What is Ve (3,3)?

Ve(3,3) originates from the (3,3) game theory of OlympusDAO, based on Nash equilibrium theory. Its basic principles are as follows:

a. Arkstart sells tokens to users in the form of bonds at prices below market value, obtaining other cryptocurrencies (such as USDC, ETH, etc.) as payment from users.

b. This process supports the platform with valuable assets and generates new tokens, which are distributed to token holders through a Rebase mechanism.

c. As more users participate in purchasing tokens, the platform will increase the token issuance and allocate more tokens to stakeholders.

d. This creates a positive feedback loop, allowing stakeholders to earn high annual percentage rates (APR) as the token price continues to rise.

e. This mechanism relies on market users choosing to continue staking their tokens instead of selling them, which is referred to as the (3,3) game strategy.

f. This mechanism encourages users to continuously participate in token staking, allowing them to enjoy the benefits of ongoing token issuance while reducing the risk of token dilution.

2. What does Ve (3,3) solve?

Long-term participation incentives: The VE (3,3) model provides long-term participation incentives for stakers by designing an economic model based on game theory and Nash equilibrium theory. This model rewards users with higher returns based on the duration of staking and the amount of staked tokens, encouraging users to lock their tokens for the long term and participate in the staking ecosystem.

Liquidity and flexibility: The VE (3,3) model allows users to stake and unstake flexibly according to their needs, enhancing liquidity. Users can quickly withdraw staked assets when needed, improving their flexibility and capital utilization efficiency based on market conditions and personal goals.

Risk diversification and benefit sharing: The VE (3,3) model achieves risk diversification and benefit sharing by rewarding stakers who hold more tokens and continue to participate. The amount held and the staking duration significantly impact the returns, reducing the influence of individual stakers on the entire ecosystem and increasing overall stability.

How to Implement Staking

Arkstart has launched staking functionality on BRC-20 tokens; using 'arks' tokens for proof of concept or testing; establishing infrastructure for staking/unstaking 'arks' tokens; the staking feature will be launched soon. Arkstart aims to adopt the innovative VE (3,3) model, which cleverly combines Curve's ve economic model and OlympusDAO's (3,3) game theory, aiming to encourage continuous staking and align participants' long-term interests more closely with the protocol's goals.

The introduction of staking functionality on BRC-20 tokens adopts an innovative approach. In the "deploy" method of BRC-20, we added an additional parameter called "yield." This parameter represents the appreciation of 'Aras' tokens per block.

For example, if you stake 1000 'arks' tokens in the staking pool and continue staking for 100 blocks, you will receive a total of 1070 'Aras' tokens, of which 70 are distributed as rewards. This reflects Arkstart's innovation, where users can obtain 'Aras' tokens by staking 'arks'.

In the BRC-20 ecosystem, we have introduced a staking address where users can transfer 'arks' tokens to this address via a transfer call, and then retrieve their 'Aras' tokens (including rewards) through the same call. This is our staking mechanism.

We are working hard to create a real-time POC (ArkStake protocol) where you can stake 'arks' tokens and see real-time updates of your 'Aras' balance.

Arkstart's Technical Architecture

Arkstart aims to bring revolutionary changes to the staking model of BRC-20 tokens and build a robust and cohesive staking ecosystem. By integrating advanced technology and innovative economic models, Arkstart provides stakers with a more efficient, secure, and sustainable staking experience while offering better returns and long-term benefits.

BRC-20 token staking: Arkstart introduces staking functionality for BRC-20 tokens, allowing users to lock their tokens for rewards.

VE (3,3) model integration: Arkstart adopts the innovative VE (3,3) model to align participants' long-term interests with the protocol's goals. This model encourages continuous staking and ensures that stakers receive high returns as the token value increases.

Staking mechanism: Through a staking address, users can transfer their 'arks' tokens into the staking pool and withdraw 'Aras' tokens, including corresponding rewards, at any time. This staking mechanism provides flexibility and convenience, allowing users to effectively manage and utilize their staked assets.

Real-time proof of concept: Arkstart is committed to developing a real-time ArkStake protocol to demonstrate staking and balance updates. This protocol will provide stakers with real-time data about their staked assets and balance changes, enabling them to effectively monitor and manage their staking positions.

By integrating the VE (3,3) model, Arkstart's staking ecosystem will provide users with a more attractive staking mechanism and higher returns, bringing new advantages and potential for BRC-20 token staking.

Arkstart's Roadmap

Q2 2023:

• Launch IDO: Conduct initial IDO to kickstart token distribution and attract early investors.
• Develop core functionalities: Focus on developing and launching core functionalities of the Arkstart platform, including Staking and Yield Farming.
• Expand partnerships: Establish strategic partnerships to expand the ecosystem and attract more projects and users.
• Enhance security: Implement robust security measures to ensure the safety of user assets and data.

Q3 2023:

• Improve user experience: Continuously enhance the user interface and experience of the Arkstart platform.
• Launch mobile application: Develop and release a mobile application for easy access to the Arkstart platform.
• Community building: Foster a strong and engaged community through regular communication, events, and rewards.
• Explore DeFi integration: Research opportunities for integration with other DeFi protocols to expand functionality and liquidity.

Q4 2023:

• Enhance liquidity mining: Improve liquidity mining programs by increasing mining pools and optimizing rewards.
• Implement governance mechanism: Introduce a governance framework that allows ARKS token holders to participate in the decision-making process.
• Expand market influence: Increase marketing efforts to raise awareness and adoption of Arkstart.
• Explore cross-chain compatibility: Research and develop interoperability solutions with other blockchain networks.

Q1 2024:

• Advanced feature development: Focus on developing advanced features such as lending to provide more comprehensive financial services.
• Global expansion: Explore opportunities for international expansion and partnerships to broaden the user base.
• Regulatory compliance: Ensure compliance with relevant regulations and legal requirements in target markets.
• Continuous innovation: Maintain a strong focus on innovation and stay at the forefront of the evolving blockchain and DeFi space.