Executive Summary

Arche Protocol is the first native decentralized USD-pegged algorithmic stablecoin with exogenous collateral protocol built on the Movement Blockchain, designed to offer stability, scalability, and yield opportunities to users in the Move ecosystem.

By leveraging native and liquid staking tokens (LSTs) , Arche Protocol allows users to mint MSD, our decentralized stablecoin, while generating sustainable yields.

Phase 0.5: Native Crypto-Assets Collateralized Debt Position (CDP) Mechanism

In Phase 0.5, the focus is on the CDP core mechanism on the Movement ecosystem. Users will be able to deposit MOVE as collateral to mint MSD.

Phase 1: Liquid Staking Tokens (LST) Collateralized Debt Position (CDP) Mechanism

In Phase 1, the core focus is on the CDP mechanism. Users deposit staked tokens such as stAptos, vSui, and staked MOVE as collateral to mint MSD, the native stablecoin of Arche Protocol. The collateral itself continues to generate staking rewards while securely locked in the protocol.

Minting MSD Process:

1. Users deposit liquid staking tokens (LSTs) such as stAptos, vSui, or staked MOVE as collateral.

2. The protocol mints an equivalent amount of MSD (1:1).

3. Staked collateral generates yield, which contributes to protocol revenue.

4. Users can choose to stake MSD in specific pools for additional yield.