Array.finance Newsletter #4

As we approach launch, we’d like to share the details of what we’ve been working on, as well as how to use the Array protocol to passively invest+earn safe, longer-term yields in DeFi.

We’ve been hard at work perfecting the Array contracts to be not only gas efficient, but also safe. This means a lot of testing using Brownie, an EVM testing suite written in Python. With Brownie, we don’t have to play around with a testnet, as it mirrors the main Ethereum chain directly. This allows us to test as if the Array contracts are live. This is a huge benefit, as some of the protocols we interact with don’t have a testnet version.

Testing the collateralized bonding curve. Note: These specific values are subject to change.

The Array App

We’ve started work on building a frontend. We wanted to build an app that is not only nice to look at, but also incredibly easy to use. Throughout DeFi summer, we saw a lot of UIs built by developers which can be clunky and confusing, which is dangerous when you add real money into the mix.

Please note: in these mockups, all values are placeholder.

The v1 Array App consists of 3 panels: Mint, Burn, and Earn.

Mint

The Minting page. Mint Array by collateralizing crypto into the underlying pool. Assets are managed by the DAO, which can vote to change/modify/reweight the underlying assets.

Burn

Burn Array to receive the underlying collateral at any time and exit your position. This exists as a “safety valve” in case of protocol failure. No more bag holding with Array!

Earn

The tried-and-true vault system.

What makes Array Vaults special? It’s simple. Yield aggregation costs money, and all aggregators take large cuts, sometimes upwards of 20–30%.

Much like a 401k, Array takes the operational cost only once from minted Array. This means all vaults run for free, and the 30% cut normally taken is instead used to mint Array tokens and returned directly to the user, instead of emitting governance tokens to inflate APYs. Users will earn their underlying asset as well as a collateralized token that grows in value over time. This means a lower APY vs competitors, but ensures a stable APY that can last for years to come with no yield-hopping between protocols necessary.

Post-v1, the Array collateral will be automatically placed in these vaults to build not only a passive asset management solution, but also a passive asset growth solution. Using Array collateral, which is effectively locked inside the protocol, we can ensure enough interest is earned to subsidize the gas costs of the vaults, allowing better yields for users. With this, Array becomes a single asset which provides yield-averaged growth across the entire DeFi ecosystem.

Wen token?

While we’re getting closer every day, we still aren’t ready to put a specific deadline on a launch date. (We all saw what happened to Cyberpunk 2077.) However, we are still on schedule with our roadmap, and will share a date when we feel confident.

Beyond Array v1

We’ve been scoping out some cool features we want to build on top of Array post-v1, but before we launch user-built Arrays:

• Metavaults: vote in the protocols the Array DAO is holding without selling your position
• Further gas and governance optimizations
• User Rebalances: Rebalance the Array and get a small reward for doing so
• Protocol Partnered Arrays: We’re in discussions with some established DeFi protocols to build Arrays of their vaults, bringing yield aggregation one step further. More to share on this soon.

From all of us on the Array core team, thank you for your support thus far, and we’re incredibly excited to fully deploy set-it-and-forget-it solutions for DeFi soon!

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