Introduction

MaiaDAO has recently launched Hermes V2, introducing new features and improvements to their ecosystem. To support the growth and expansion of the Hermes network, AraFi is introducing the ARAFI x HERMES GAUGE BOUNTY PROGRAM.

This initiative aims to engage the community in contributing to the expansion of the Hermes ecosystem. By incentivizing dedicated community members to help acquire new partners, we hope to foster continued growth and development within the Hermes network.

Objective

To leverage the existing community in expanding the Hermes ecosystem by incentivizing the addition of quality gauges to Hermes V2.

Program Details

1. Funding: 1000 ARA donated by AraFi to the MaiaDAO BD treasury
2. Reward Structure: Up to 200 ARA per additional gauge added to Hermes V2
3. Duration: 1 month
4. Participant Cap: 5–7

Application Process

1. Community members submit a short application demonstrating

• Understanding of the MaiaDAO and Hermes ecosystem
• Communication skills and alignment with MaiaDAO branding

2. Selection criteria: MaiaDAO BD
3. Selected members gain access to a private Discord channel

Program Structure

1. Onboarding:

• Provide educational resources on effective partnership outreach
• Guidelines for approaching and vetting potential partners

2. Tracking and Attribution:

• Implement a system to track member contributions
• Attribute successful gauge additions to specific members

3. Reward Distribution:

• Tiered reward system based on impact and complexity of added gauges
• Distribution at the discretion of the MaiaDAO BD team

Quality Control

1. Emphasis on quality-driven protocol interactions
2. Alignment with MaiaDAO communication and social branding
3. Proper vetting process for potential partners

Metrics for Success

1. Number of new gauges added
2. Total Value Locked (TVL) increase
3. Bribe APRs

Community Engagement

1. Regular updates to the broader community on program progress
2. Community voting on proposed partnerships / gauges

Future Scalability

1. Potential for additional ARA rewards for future programs
2. Expansion of participant numbers based on success

Risks

Community outreach is below standard and could negatively affect MaiaDAO eco branding and positioning

Wrapper Flow

Let’s shed some light on the ecosystem’s range of governance aggregation and liquidity-focused products. The main method for governance “blackholing” is through the minting of aAssets. Users can deposit tokens into AraFi, which locks these assets forever as veTokens. Ara returns a tokenized version of the assets as an aAsset.

Wrapper Creation
1. Visit the hermes exchange to acquire Hermes, and Maia tokens.

2. After acquiring the Hermes and Maia tokens navigate to https://arafi.app/convert to wrap them and receive our aAssets.

For Hermes and Maia

a. Deposit a specified amount of each token and receive an equivalent amount of the corresponding wrapper tokens.

b. Authorize your token(s) (MAIA/HERMES) for converting, make sure to input the amount of token(s) you want to approve before clicking on the Approve button.

c. Proceed with wrapping your Tokens by inputting the amount of token(s) you want to wrap and click on the Wrap button.

For veHermes

Important: For the conversion of veHermes to aHermes, please be aware that the current exchange rate is set at 70%. This means that for each veHermes you wrap, you will receive 0.7 aHermes in return. This exchange rate will dynamically adjust in response to changes in the aHermes supply, potentially affecting future conversions.

Important: Ensure you reset your veNFT vote and unstake all your LP’s linked to it prior to wrapping. These steps are crucial for a successful wrapping.

d. Navigate to the ‘Wrap veNFT’ section located within the aHermes dashboard. From the dropdown menu, select the veNFT you wish to convert into aHermes. Confirm your selection and click on the ‘Wrap’ button to complete the process.

Once you have obtained your aAssets you’ll have two avenues to utilize them within our ecosystem, staking and Farming on Hermes.

Option 1 Staking

1. Authorize aAsset(s) for staking. Input the amount of aAsset(s) you want to stake before clicking on the Stake button. Do note that for aHUM, you do not have to carry out this step as your aHUM is automatically staked once you did the conversion from HUM to aHUM.

2. Proceed to stake your newly minted aAssets.

a. From the dropdown menu, select the correct veNFT and then click on the ‘Wrap’ button.

Important: Ensure you reset your veNFT vote prior to wrapping. This step is crucial for a successful wrap process.

3. Once adequate rewards have been accumulated, select the “Claim” buttons to harvest your Metis/Hermes/Ara rewards.

Option 2 Farming (available 2 weeks after aAsset launch)
Available pairs: aHermes/Hermes , aMaia/Maia

1. Upon acquiring AraFi’s aAssets, navigate to Hermes Trade if you plan to sell for LPing, or Hermes Liquidity if you already possess the other paired asset.

2. Specify the amount, approve expenditure, and then select “Supply.”

3. Proceed to Hermes Stake to deposit your newly made LP.

Closing Thoughts

Wrapping up our exploration of the AraFi ecosystem, we trust that you now possess a solid grasp of its operational mechanics. As your journey continues, remember that your active participation is fundamental to the ecosystem’s success. Always keep in mind that every transaction, every stake, and every decision contributes to the dynamic and promising future of AraFi. We look forward to sharing more insights and discussions in the forthcoming articles. Together, let’s navigate and shape the exciting landscape of decentralized finance.

As we present the third chapter of our series, we’re eager to guide you through this forthcoming phase of our journey. Our previous articles explored the conceptual foundation and the promising potential of the AraFi ecosystem in reshaping the decentralized finance landscape. Today, we’re excited to reveal a pivotal transformation in our project: the migration from $AERA to $ARA, signifying a dynamic progression in the AraFi narrative. This article serves as a comprehensive guide for the approaching token migration process and the introduction of our brand-new DApp, ensuring a seamless transition for all our users as we step into this new era.

Migration Process

Token Migration

Token migration is a significant part of our rebranding. This process involves moving your $AERA tokens to the new $ARA tokens. We’ve designed this process to be as straightforward as possible.

This will concern 3 groups:

AES Stakers

1/. Visit the Elite Network. Enter the amount of AES you have and choose “Withdraw All.”

2/. Please navigate to the AERA HOLDERS section further down the article to complete your transition.

LP Holders

1/. Begin by visiting Hermes Rewards and claim any accumulated rewards.

2/. Head over to Hermes Stake and locate the AERA/USDC Pool, then opt for “Unstake ALL”. Following this, navigate to Hermes Manage select the AERA/USDC LP, and click on “Remove”. Finally, adjust the quantity to “100%”, press the “Remove” button, and accept the transaction in your wallet.

3/. Please navigate to the AERA HOLDERS section further down the article to complete your transition.

AERA Holders

1/. Visit https://beta.arafi.app/migrate and click on “Approve” to authorize the spending of AERA.

2/. Click on the “100%” button to input the total AERA to transition and click “Migrate”.

Fractal Migration

Here are the steps on how to transition your fractals:

1/. Navigate to https://beta.arafi.app/migrate and Select “Approve” to give us permission to migrate your fractal (do note that you can only migrate one fractal at a time)

2/. Following approval, a new button will appear labeled “Migrate.”

3/. Approve the transaction and repeat this process for each fractal you own.

Upon successful migration, you will immediately be able to see your new $ARA tokens on the migration page itself. As for your newly migrated Fractals, they can be viewed at https://aerarium-staking-frontend.vercel.app/fractals. These confirmations should assure you that the process has been carried out successfully.

Congratulations on successfully completing the migration process!

A Generous Timeframe for Migration: Three Months

As part of our transformation, we have provided a generous three-month window for the migration from $AERA tokens and V1 Fractals to their new counterparts. Please note that once this period concludes, the migration process will be permanently stopped, rendering any remaining $AERA tokens and V1 Fractals ineligible for further migration. We encourage all users to complete the process within this timeline to avoid any complications.

During this period, please remember that our dedicated support team is readily available to assist you with any issues or inquiries you may have. For immediate assistance, you can reach us through our official discord.

We want to ensure that this transition is as smooth and effortless for you as possible. Hence, do not hesitate to reach out to us should you need any help during your migration process.

As we embark on this exciting new journey, we look forward to your continued support and enthusiasm in the AraFi ecosystem. Thank you for being part of our transformation.

Conclusion

Stay tuned for our next medium article, ‘Part 2: Embracing the New AraFi Ecosystem’, where we will delve into the functionality of our exciting new products and provide a comprehensive guide on how to use them in the reimagined AraFi ecosystem.

In the rapidly evolving world of decentralized finance (DeFi), AraFi stands out as a project with a unique value proposition. But what makes it so unique? This article delves into AraFi’s distinct advantages, its role as a meta-protocol, the value of integrating Hermes, Maia, and Hummus, and their promising future.

Solidly primer

In the world of decentralized finance (DeFi), the concept of ‘Curve Wars’ has been a hot topic amongst cryptocurrency enthusiasts. The Curve system evolved on the standpoints to properly incentivize user direction and action.

Curve is a decentralized exchange (DEX) that specializes in trading stablecoins with low slippage. This means that users can exchange stablecoins such as USDC, USDT, and DAI with minimal price impact, making it a popular platform for traders and liquidity providers.

Curve Finance was a groundbreaking protocol that set the standard for many different incentive model types in DeFi. The competition for liquidity in the crypto space, especially on platforms like Curve, has led to competitive protocol designs and the emergence of the “Curve Wars.” All profits made by the platform are directed to both token holders and liquidity providers, with innovation on top of the Sushi Swap Master chef liquidity mining model that encourages users to deposit LP and in turn be rewarded for doing so. Curve Finance takes this one step further by giving incentive direction power to token holders.

Solidly then refined the model by utilizing the Ohm 3,3 rebasing mindset to create non dilutive vote locking systems that rewarded ecosystem participants that helped direct liquidity incentive direction by token voting weight. Like Curve, with fee structure rewarding active participants and integrated protocols, Solidly evolved the Dex ecosystem to provide an affordable liquidity market solution to protocols that need to rent liquidity through incentives. This mechanism nurtures long-term engagement, weaving a vital connection between stakeholder interests and the protocol’s success. Yet, as with any novel approach, it carries its unique suite of opportunities as well as challenges.

AraFi enters this landscape aiming to balance ve tokenomics’ promises and pitfalls.

Like Convex did for Curve, AraFi intends to aggregate governance for Hummus, Hermes, and Maia, building on top of their vote escrow models. AraFi provides participants an exit via liquid wrappers, refining ve tokenomics, enhancing user experiences, and increasing governance token demand.

In the evolving DeFi arena, AraFi balances innovation and prudence, ensuring the protocol and its token holders thrive in this new age of DeFi progress. As we forge ahead, we’ll delve into the specific protocols AraFi aims to aggregate governance for, affirming our commitment to bolster Metis’s DeFi ecosystem growth.

Understanding veHermes, veHum, and sMaia: The Building Blocks of the AraFi Ecosystem

Before diving into the benefits of aggregating these tokens we’d like to explain how they work.

veHermes: The Vote-Escrowed Version of Hermes

Let’s kick things off with veHermes, the vote-locked version of Hermes, with locking periods of up to 4 years. These locked positions receive weekly rebases, ensuring they don’t get diluted from new token emissions. veHermes offers a plethora of attractive properties; it’s not dilutive, earns ‘bribes’ from the gauges being voted upon, allows yield farmers on the Hermes DEX to earn up to 2.5x higher APR, and facilitates control over the governance of the Hermes Protocol.

veHUM: The Power of Locked HUM

Moving from the benefits of veHermes, let’s explore another key player: veHum, the vote-locked version of HUM. This can currently be obtained in 2 ways, either by staking your HUM and earning veHUM linearly for 18 months (180x), or by locking it flexibly up to a year to receive all your veHUM upfront (120x). Similarly to veHermes, veHum grants its holders the ability to vote on the Hummus gauges which currently earns them HUM rewards, it grants them boosted APR’s on their farming positions and lastly enables holders to receive a share of protocol fees and metis rewards.

Maia and sMaia: Potential Awaiting Release

Having covered veHermes and veHum, let’s now turn our attention to another crucial component of the ecosystem: Maia and its staked version, sMaia. Currently, the options and functionality of this token are limited, the staked version earns real yield generated from the Hermes dex as well as controlling Maia governance proposals. Maia is highly scalable into the future as the treasury allocation of Hermes will be tokenized for vote lockers to utilize its boosting capabilities. This allows for layered fee based incentive systems as it’s further integrated into boost direction for decentralized vaults.

The Role of Meta-Protocols in DeFi

Now that we’ve examined the individual tokens, it’s time to take a step back and view the bigger picture: the concept of meta-protocols in the intricate, fast-paced world of decentralized finance. A meta-protocol is a DeFi protocol that is designed to act as an overarching layer above other DeFi protocols, akin to the role of the Federal Reserve in the US economy. Just as the Federal Reserve underpins the US economy and influences a significant portion of the global economy, with the USD serving as a principal medium of exchange, a meta-protocol provides a comprehensive framework for DeFi, streamlining operations as well as increasing capital efficiency and governance participation!

At its core, a meta-protocol facilitates an interconnected and sustainable DeFi economic framework that addresses the challenges of fragmentation in decentralized financial systems. It serves as a unified set of mechanics, interface, and tools that simplifies the management and trade of DeFi assets. By navigating through a singular interface, users can manage assets without having to grapple with the complexities of multiple protocols. This not only enhances the user experience but also elevates the efficiency of DeFi operations.

Expanding on this, meta-protocols also empower developers, paving the way for more sophisticated DeFi applications. By providing an integrated platform that allows for simultaneous interaction with multiple applications, meta-protocols enable the development of complex, innovative solutions that push the boundaries of what’s possible in DeFi.

Yet, it’s important to note that the influence of meta-protocols isn’t confined to operational efficiency and innovation. By addressing the challenges of fragmentation and complexity in DeFi, meta-protocols enhance its accessibility and usability, making it more appealing to a broader user base.

AraFi, as a meta-protocol, will exemplify this transformative potential. By aggregating governance power from different DeFi protocols, it streamlines governance and enhances the influence of its users across multiple platforms. This aggregation will not only boost the influence of AraFi holders, but it also enhances the functionality of the protocols they govern. Thus, AraFi is not just a participant in the DeFi landscape — it’s a powerful influencer shaping its future.

Final Thoughts

Surveying the vast landscape of decentralized finance, AraFi’s role as a pivotal innovator becomes clear. It not only bridges gaps but fosters synergies among various DeFi protocols. Through its efficient management of aggregated base layer tokens, AraFi amplifies its influence, fueling a rise in active governance.

The potential outcomes are staggering. AraFi’s union with Hummus, Maia, and Hermes promises to catalyze governance participation, boosting decision-making capacity and ecosystem dynamism. Moreover, the emergence of perpetual value accrual ensures continuous capture and reinvestment of value, promoting sustainable expansion.

But what does this mean for stakeholders? AraFi offers benefits in abundance. By enhancing yields, it optimizes returns, making the DeFi space more appealing. By alleviating the apprehension associated with token locking or management, AraFi fosters greater involvement, building a sturdy, diverse, and resilient ecosystem.

AraFi’s prospects are significantly amplified due to its strategic synchronization with its base layer protocols. This synergy doesn’t merely expand AraFi’s influence but also drives the advancement of Metis’s DeFi landscape.

As we peer into the future, the prospects for cooperation and growth are immense. With imminent developments poised to make significant strides in the DeFi space, AraFi, through its ingenuity and strategic alliances, is uniquely positioned to reshape DeFi dynamics. The future of Metis stands on the brink of a transformative leap, heralding improved accessibility, efficiency, and value.

Keep an eye on this space as we embark on this thrilling voyage.

Welcome to a new era in the world of decentralized finance (DeFi). We are on the brink of unveiling something fresh and innovative — a transformation characterized by a new vision, a new identity, and a new approach to the intricacies of the Defi.

This journey commences with AraFi, a novel protocol set to make waves in the DeFi space. While our new brand identity won’t fully come to light until the third article of this series, the essence of this metamorphosis reverberates throughout our discussion. We invite you to join us as we unfold the complexities of the AraFi ecosystem within the larger Metis and eventual Omni-Chain environment, providing you with insights into its players, their roles, and their interactions. Let’s commence this expedition with a deep dive into AraFi’s ecosystem participants, as we prepare you to partake effectively in its promising future.

This article will delve into the AraFi ecosystem, highlighting its key players and outlining the roles they play within the broader Metis environment.

AraFi’s Key Players

1. Ara Holders and Lockers

Ara holders and lockers form the backbone of the AraFi ecosystem.They will be uniquely positioned to gain yield, fees, and, more importantly, the ability to govern the ecosystem through locking.

It’s important to understand that this is not a short-term play. Ara holders form an exclusive group that recognizes the immense value in having governance over future ecosystem projects.

To facilitate a healthy formation of protocol delegation, AraFi will utilize a rolling governance model where users will gain more access to influence decision types as the ecosystem scales.

This authority allows them to participate actively in shaping the ecosystem’s direction and policies.

Although AraFi’s model does not currently include the concept of bribing it’s envisioned that in the future, this will be an effective means for influential individuals and DAOs to influence the ecosystem’s direction, particularly in the context of the AraFi’s governance module. This might be especially true when these players find themselves unable to amass significant amounts of Ara tokens due to market dynamics.

It’s important to understand that being an Ara holder or locker is a forward-looking investment. These players are well-positioned to shape the future of the AraFi ecosystem and stand to gain significantly from its success.

2. Maiadao Eco (Hermes, Maia)

Our next key player, Maiadao Eco, currently the leading DEX on Metis, comprising Hermes and Maia, holds an influential position in the AraFi ecosystem. Maia and Hermes token holders and stakers are poised to gain significantly as the AraFi ecosystem evolves.
The system AraFi employs is designed to function as a metaphorical ‘black hole’ for Maia and Hermes tokens. This mechanism is expected to secure upwards of 10% of the circulating supply of Maia and Hermes tokens, creating meaningful scarcity within the ecosystem.

This scarcity results from people minting AraFi’s wrapped assets, aMaia and aHermes. Any Maia or Hermes tokens accumulated by AraFi through minting won’t ever return to the market. Instead, they will be max-locked as veHermes, sMaia, in the future transitioning to bHermes and vlMaia.
This mechanism of locking a substantial portion of the Maia and Hermes supply will inevitably lead to an increase in the value of these tokens.

Additionally, Maia and Hermes benefit greatly from having a governance aggregator that is completely aligned with their vision. The more Maia and Hermes tokens are locked, the more influence AraFi gains, leading to the optimal functioning of the ecosystem. This alignment with the Maiadao Eco vision ensures that the ecosystem continues to work effectively and sustainably.

3. aHermes and aMaia Stakers

The aHermes and aMaia stakers are the holders of AraFi’s wrapped tokens that focus on yield optimization, functional automation, and unlocking liquidity.

AraFi provides the option to mint aHermes and aMaia at a variable ratio by contributing Hermes and Maia tokens, respectively. Furthermore, AraFi will incentivize a liquidity pool that will allow for the conversion of aHermes and aMaia back to Hermes and Maia, ensuring that liquidity is maintained within the ecosystem. These are modular systems that take into consideration possible changes to Maia eco assets such as the involvement of bHermes assets.

To remain modular into the future aAssets will always represent the value accrual of Ara’s governance intake, allowing the ratio of minted assets to received assets to change in response to protocol asset changes. Additionally, with these assets, AraFi will be positioned to offer higher yields in the upcoming Vault products.

4. Hummus Protocol

The Hummus protocol and its holders play a similar role to Maia and Hermes in the AraFi ecosystem. Just like aMaia and aHermes, blackholing HUM will result in a significant portion of the HUM’s circulating supply being locked, contributing to the token’s scarcity and potential value appreciation. The locking mechanism operates through a process akin to the minting of aMaia and aHermes. Any Hum tokens accumulated by the protocol won’t re-enter the market but will be max-locked.

As for the Hum Protocol itself, having a fully aligned aggregator greatly benefits its vision, as it’s in the best interest of both protocols that the ecosystem thrives.

5. aHum Stakers

As with aMaia and aHermes, aHum stakers will benefit from a higher yield than their native counterparts. Additionally, they will benefit from automation by not having to manage their gauge vote and have a liquidity pool from which to generate yield and exit the market if required.

6. Liquidity Pool Stakers

Liquidity Provider(LP) stakers play a crucial role in the AraFi ecosystem. Properly incentivized, LP providers are extremely beneficial to an ecosystem as they help minimize price volatility.

AraFi’s LP providers will have a variety of choices that will all benefit from significant yield and arbitrage opportunities, as well as double token exposure. Whether seeking high yields, exposure to assets at a potential discount, exploring exit strategies for a particular asset, or capitalizing on arbitrage possibilities, these pools offer diverse benefits.

To guarantee ample liquidity for all parties involved, these pools will be incentivized by leveraging Hermes’s bribing model and future vault systems.

Closing Thoughts

Through the lens of this article, we trust that we have shed light on the various cogs of the AraFi machinery. We’ve introduced you to key players within the ecosystem and given you a glimpse into our protocol design philosophy — a win-win-win approach for all involved parties.

As we continue to unveil our innovative offerings, our subsequent articles will delve deeper into our unique tokenomics and the value proposition of aggregating governance within the AraFi ecosystem.

In the ever-changing arena of the Metis DeFi landscape, AraFi aims to assert itself as an influential player. Its unique ecosystem, formed by integral contributors ranging from Ara Holders and Lockers to LP Stakers, works synergistically towards stability and growth. As AraFi grows and matures, these roles and interrelationships will form the cornerstone of its success.

As we move closer to our launch, our priorities are firmly centered on transparency and education. Alongside this, we are also preparing for a significant transformation — a new brand identity that we’re excited to reveal soon. But before that grand reveal, our focus remains on AraFi and its vibrant ecosystem. We invite you to expect more enlightening articles in this series soon. If you have any questions, or if the anticipation of our new brand unveiling is stirring curiosity within you, we encourage you to join us on our Discord. We’re always here to assist and eagerly look forward to engaging in insightful discussions with you. Your active involvement and keen insights are what make our ecosystem flourish!