Whitelisting New Assets

Aark's collateral policy is flexible and conservative, aligning with the requirements of our flywheel model. While liquidity providers and traders interact with leveraged LP and RMM features, the stability and variety of collateral options play a crucial role.

Currently, Aark allows using USDC and Ethereum as collateral during the Open Beta. Soon, BTC will be added to the list. This ensures that participants have reliable options for managing their risk and contributes to the overall stability of the trading environment.

In the future, we plan to cautiously expand our list of accepted collateral, potentially including other assets within the top 10 by market cap. It's important to note that the $AARK token will not be used as collateral, maintaining its distinct function in our ecosystem.

Criteria for Adding New Collateral

The selection process for new collateral assets is thorough and based on the following factors:

• Market Capitalization: The asset should have a robust market cap to ensure stability.

• Trading Volume: High trading volumes are preferable as they indicate a more liquid asset.

• Technical Stability: The asset's underlying blockchain technology must be secure.

• Architecture Integrity: We evaluate the overall structure of the asset's blockchain to ensure its reliability.

• Legal Compliance: Any new asset must meet legal and regulatory guidelines to ensure user safety.

By adhering to these criteria, Aark aims to maintain a stable and efficient trading environment for liquidity providers and traders.