Risk Management & Liquidation

Arche Protocol’s core strategy involves using multiple staked assets to provide a larger degree of risk diversification.

While one token may experience volatility or risks like slashing, the diversification across multiple assets reduces exposure to the risk of any one asset underperforming or de-pegging. Aptos, Sui, Movement, Ethereum, and BTC all employ different consensus mechanisms, validator sets, and slashing risks. This ensures that if one network experiences issues such as slashing or a liquidity shock, the other will likely remain stable.

We diversify across multiple liquid staking platforms and validators to reduce reliance on any one provider and help avoid bottlenecks in liquidity that might occur if a single liquid staking service faces challenges.