Arkadiko are based on the thought of “what if loans could repay themselves.”  Users get rewarded to borrow and there is no need for monthly payments. Arkadiko leverages Stacks’ unique consensus mechanism, Proof of Transfer, in their design. This allows for any collateralized STX to benefit from Stacking yield, which offers a yield higher than the loan interest rate, effectively making it a self-repaying loan.

They bring DeFi to Bitcoin. Arkadiko is an open source and non-custodial liquidity protocol for minting stablecoins, earning interest on deposits and borrowing assets on Stacks.

Arkadiko is a decentralized, non-custodial liquidity protocol where users can collateralize their STX tokens and borrow a stablecoin called USDA.

This enables users to gain increased liquidity in the form of a soft-pegged US Dollar stablecoin, while maintaining original asset exposure.

The STX tokens generate a yield, which pays back the USDA loan automatically over time.

At current yields, it takes about 3 years to pay back your loan completely. No need to worry about monthly payments.

In short, they are using the Clarity language to build all smart contracts, which is a transparent and decidable language which gives users insight into how each transaction will be executed and the changes it makes. Additionally, they undergo regular security audits to make sure crucial vulnerabilities are found before the code lives on mainnet.

The stablecoin yield is generated by the Stacks consensus mechanism known as Proof of Transfer (PoX).

In order to make use of a self-repaying loan, users need to hold STX tokens. Once users have the STX tokens, they will be able to deposit those in an Arkadiko Vault as collateral. Against the STX collateral, users will be able to borrow an amount of USDA equivalent to 25% Loan-To-Value. The STX tokens will be stacked in Proof of Transfer, and will automatically be used to pay off the borrowed USDA.

Just like with most lending and borrowing protocols, the position can be liquidated. It is important to ensure users will always deposit sufficient collaterals to keep positions healthy.

DIKO is the Arkadiko Governance Token, it is used to participate in governance and can be earned through staking on the Arkadiko protocol.

Users are able to earn DIKO through the liquidity mining program once they are on mainnet. Users are able to stake LP tokens or earn DIKO by creating an Arkadiko Vault, borrowing USDA.

Defi is still a nascent industry and it has its risks.

Community response:  Providing liquidity on Arkadiko Finance since day one. Great platform. Great experience.