Ark Fi | Earn up to 2% per day in DeFi Passive Income — an Overview

In both CeFi and DeFi, it can be agreed that compound interest and passive income will virtually always outperform price action, particularly in times of market volatility and adverse conditions. Compound interest is at the heart of this protocol.

Ark Fi is a new high-yield DeFi passive income protocol built on the BEP-20 Binance Smart Chain (BSC) offering an impressive 2% daily ROI on its Native ARK token. Although the DeFi space has seen impressive passive income yields in the most recent bull market, this may be one of the first protocols to offer exciting passive yields and consistent price action throughout the bear market.

While this protocol can be seen to be built around similar ‘ponzinomics’ schemes that have given great initial success to parallel projects such as Drip & Olympus; this protocol seems to spearhead the main difficulties that were encountered by implementing mechanisms to discourage destabilizing behaviors that inevitably brought down previous protocols and instead promotes community-driven behavior.

Ark Vault

The Ark Vault is the highlight of the Ark Fi Ecosystem and offers an impressive 2% Return on Investment per day as long as your Net Deposit Value (NDV) remains positive. The NDV is a measure of how much ARK you have brought into the ecosystem (post-tax), inclusive of direct/indirect referral rewards minus your total post-tax rewards.

While there are many ways to increase your NDV (referrals/new capital), your initial NDV will turn negative once you have earnt the same amount of ARK tokens that you injected into the ecosystem. When your NDV turns negative your ROI reduces from 2% to 1% per day, still an impressive passive income yield where the reduction aids in the sustainability of the protocol.

The Ark Vault has a max-payout scheme of 300% of your principal balance, up to 80,000.00 ARK tokens, for each account. This feeds directly into the Ark Fi mechanic of being able to compound, withdraw or airdrop your rewards. Your principal balance is your post-tax deposit, plus compounds, plus referral rewards, and received airdrops. A key mechanism in the Ark Vault is your Compound Withdraw Ratio (CWR) which is your time compounded (secs) / time withdrawn (secs) over the past 14 days and is limited to 0.75 to 1.5 CWR (unless you hold a Legacy NFT).

By compounding you are essentially increasing your principal balance, allowing for a larger max payout (ie. For every 1 ARK that you compound you are giving yourself another 3 ARK in the future to withdraw) and larger daily payouts in the future, whilst also retaining capital in the project, aiding in the sustainability of the protocol. The protocol limits the CWR to 1.5 (unless you hold a Legacy NFT) which forces users to withdraw their money in consistent intervals. This mechanism allows for more stable price action (no large pump and dumps) and also forces investors to realize profits.

I would highly recommend that you look at the following google spreadsheet by Dr. Kelly Snook that allows investors to forecast and strategize the best scenarios for their individual situation by considering the use of multiple wallets / different Compound Withdraw Ratios and the use of Legacy NFT’s. The calculator can be found here (make sure you ‘make a copy’ to be able to change the values).

Ark Foundation

By investing in the Ark Vault, you unlock the ability to access the Ark Foundation. The Ark Foundation is a deep liquidity pool that creates a 50/50 liquidity pair between the ARK token and BUSD to create BOND. As with most liquidity pools in DeFi, the investor receives a variable yield based on the transactional volume. It is estimated that the yield, at the time of writing, is approximately 0.2–0.3% daily. The benefit of the Ark Foundation over the Ark Vault is that your BOND is available to be withdrawn at any time (for a 10% fee) or compounded back into the Foundation (0% fee) with rewards being paid out in BUSD.

Investing into the Ark Foundation also increases your Syndicate Reward Level and can be used to develop rewards that are paid directly into your principal balance which increases your NDV and allows your Ark Vault to maintain 2% ROI for a longer period of time.

SpARK Rewards

Currently, Ark Fi is utilizing 50% of the Round Robin rewards that are issued to the Guardian Wallet to run a daily lottery. The daily lottery pays approximately 140–150 ARK per day into the winner's Vault and this value is increasing daily. In order to qualify for the lottery, investors must have at least $250 USD (Level 1 referral rewards) value in Ark Foundation or hold a Legacy NFT.

While the tax system is quite complex, and it is heavily tailored towards the sustainability of the protocol; I do recommend you read the Ark Fi White Paper to develop an integrated understanding of the protocol as there are various exciting aspects to this protocol.

Conclusion

Ark Fi is definitely a new contender in passive income protocols and with rewards of up to 2% per day you can see why Ark Fi has an almost $5,000,000.00 market cap after a few weeks. Utilizing a time-tested model and including new mechanics such as Reward Throttling, Pump & Dump Throttling, Sustainable Taxation, Tax Scaling, Price Stability, and a healthy referral program to push the protocol towards a sustainable future the degen in me cannot miss this opportunity. However, it also must be stated that this protocol is in the infancy of its lifespan, and we have seen larger protocols fall over in much better market conditions regardless of the fundamentals.

Personally, I have invested $1,000.00 USD into this protocol, I have split this into $500.00 USD into the Ark Vault and $500.00 USD into the Ark Foundation. I aim to slowly introduce multiple wallets to take advantage of the referral program and have each of these wallets sit at a CWR of 1.0. I do not see the need to purchase a Legacy NFT to increase my CWR. Using the calculator above it is possible to turn a $500.00 USD initial investment into over $500.00 per month in passive income by month 4, which will progressively increase as I maintain a CWR of 1, given the price remains constant and the protocol can sustain rewards. As always, I will be taking out my initial investment as soon as possible before optimizing my position for long-term growth.

If you would like to see my Month 1 returns and updated strategy feel free to have a read of the following article!

Please remember that this is not financial advice and you should only invest money that you are willing to lose, please do your own research.

A good starting point can be found at the following links:

Ark Fi Protocol — https://app.arkfi.io/

Ark Fi Whitepaper: https://docs.arkfi.io/

Ark Fi Contracts: https://docs.arkfi.io/ecosystem-overview/contracts

Ark Fi Calculator: https://docs.google.com/spreadsheets/d/1kpGmd1ChZzRG4DVOGgVelp-51iUcPuGW-ZD4Ljk9ZUU/edit#gid=268037606

If you do invest, please consider supporting me by using my referral link:

https://app.arkfi.io/swap?ref=0xa5e0e6c603c18ea917024794375ba07f57b2bd7e