What is Arch?
Overview
Arch is the first and only native decentralized exchange (DEX) purpose-built for the Botanix ecosystem — a modular Bitcoin Layer 2. It is more than a simple swap platform: Arch serves as the liquidity and yield backbone for BTCFi, offering tightly integrated products that span across DEX, stablecoins, and structured yield.
🔗 Core Components
Arch is composed of three tightly integrated products, all of which drive utility and liquidity to the platform and the ARCH token:
DEX Built on the highly audited, high-performance Algebra V4 Engine, which powers billions in weekly volume across dozens of ecosystems. Includes V4 Hooks and Automated Liquidity Management.
USDa – RWA Stablecoin Powered by M0, a leader in real-world asset (RWA) stablecoins. USDA brings yield from U.S. treasury bills on-chain, and is designed to pair with BTC assets, LSTs, and CDP-based stables.
Yield Trading Engine Arch has exclusive access to a fully audited yield trading engine, which unlocks new structured product strategies for Botanix-native assets and expands yield surfaces for LPs.
🔒 Security & Performance
Arch is built with security, scalability, and sustainability in mind:
Powered by Algebra Integral V4, a heavily audited DEX engine
Integrated automated liquidity management (ALM) strategies
Access to the only yield trading engine available on Botanix
Backed by M0's RWA infrastructure for stablecoin resilience
🤝 Strategic Alignment
Arch is fully aligned with the Botanix core team and its broader ecosystem rollout. The protocol has:
Secured pre-launch liquidity commitments from key partners
Built custom Hooks and vault integrations for Botanix-specific assets
Positioned itself as a primary DeFi venue for BTC-based assets, stables, and LSTs
🌍 Purpose-Built for BTCFi
Arch is optimized for BTC-native users and capital, solving a major gap in Bitcoin Layer 2 infrastructure. Key differentiators include:
Sustainable BTC pair yields using RWA, swap, and staked BTC layers
Native support for assets like stBTC, rovBTC, pBTC, pUSD, and USDa
Institutional-grade vaults and pre-deposit strategies for capital-efficient onboarding
🔁 Flywheel Design
All of Arch’s components feed into a unified value flywheel:
Protocol usage generates fees across DEX, stable, and yield products
Fees flow back to ARCH stakers via xARCH
Ecosystem-wide incentives (e.g. points, emissions, partner rewards) bootstrap early usage
Capital compounds into deeper liquidity and higher yields
This design makes xARCH a central asset for BTCFi users looking for real, sustainable, and ecosystem-aligned returns.
Summary
Arch is the native liquidity engine of Botanix, designed from the ground up to support BTCFi. With deep integrations across stablecoins, DEX infrastructure, and yield trading — and with fee alignment at its core — Arch is poised to become the financial layer that powers Bitcoin’s modular future.
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