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The Problem

Points farming on perp DEXes is capital-inefficient. You deposit capital, lock it in a strategy, earn points alongside PnL, and hope for an airdrop. You can’t sell the points pre-TGE, you can’t separate the yield from the points, and you can’t get leveraged exposure to either one independently.

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The Solution

We split the output of a perp trading strategy into two tokens, ST (claim on USDC returns) and EPT (claim on exchange points), and run a separate orderbook for each. Points farmers buy EPT. Yield seekers buy discounted ST. Each user gets exactly the exposure they want, at a price set by the market.

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Who is ArcX For?

Points Farmer

You want points exposure without running a strategy yourself.You place a buy order for EPT on the EPT/USDC orderbook at $0.05. Your $100 buys 2,000 EPT — 20x more than a direct deposit. The effective leverage changes with time remaining in the epoch: the same price means higher APR later. You never touch ST. You never run a strategy. You just hold EPT, accrue credits, and claim PointsTokens after the epoch matures.Exit: Sell your EPT on the orderbook at any time.

Yield Seeker

You want predictable USDC returns with no points risk.Points farmers are buying EPT, which pushes ST prices down. You buy ST on the ST/USDC orderbook at $0.90, a 10% discount to NAV. The strategy earns 1% over the epoch, so NAV rises to 1.01. You redeem at NAV 1.01.Return=1.01−0.900.90≈12.2% per epoch\text{Return} = \frac{1.01 - 0.90}{0.90} \approx 12.2\%\text{ per epoch}You never hold EPT. You have zero points exposure.Exit: Sell your ST on the orderbook at any time.

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The Three Tokens

Strategy Token (ST)

Claim on the strategy’s USDC value. Priced by NAV. Redeemable after maturity.

Expected Points Token (EPT)

Claim on exchange points earned during the epoch. Accrues credits over time.

PointsToken

1:1 representation of actual exchange points. EPT holders claim these after maturity.
ST tracks the per-share USDC value of the underlying strategy. EPT accrues credits while you hold it. Your share of points at maturity equals your credits divided by total credits. PointsToken is the final output: one token per point, redeemable at TGE.

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How It Works

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The Minting Equation

1 USDC=1R ST+1 EPT1 \text{ USDC} = \frac{1}{R} \text{ ST} + 1 \text{ EPT} where RR is the current per share. Depositing 1 USDC into a strategy mints both tokens together.

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Two Orderbooks, One Matching Engine

We run two separate orderbooks: EPT/USDC and ST/USDC. Orders are matched off-chain and settled on-chain (Starknet). Cross-matching for mints. When a buy order on the EPT book and a buy order on the ST book have prices that sum to at least the minting cost, the engine cross-matches them. The protocol takes the combined USDC, deposits it into the vault, and delivers EPT to one buyer and ST to the other. Neither buyer had to deposit into the strategy directly. Secondary trades. Within each orderbook, buyers and sellers trade existing tokens. No minting or burning occurs.

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EPT Pricing

The fair value of EPT is derived from the ST price: EPTfair=1−XR\text{EPT}_{\text{fair}} = 1 - \frac{X}{R} where XX is the ST market price and RR is the current NAV. This is the fair price from minting parity. The actual market price is set by supply and demand — arbitrageurs bring it close to fair, but the market has the final say. As the epoch progresses, EPT price tends to decay because fewer credits remain to be earned.

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Credits and Points

EPT accrues credits over time. Credit amounts are based on the strategy’s activity on the exchange. Credits start fresh on acquisition. A buyer starts from zero regardless of the token’s history. Points are distributed weekly. Each week’s points are split among that week’s credit holders: your points=∑wyour creditswtotal creditsw×pointsw\text{your points} = \sum_{w} \frac{\text{your credits}_w}{\text{total credits}_w} \times \text{points}_w Early holders benefit: in weeks when fewer people hold EPT, each holder gets a larger share of that week’s points.

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Direct Minting

Instead of buying on the orderbook, you can deposit USDC directly into a strategy. You receive both 1R\frac{1}{R} ST and 1 EPT per USDC deposited, minus a small fee (varies by strategy) that covers deployment costs (exchange fees, spreads, bridging). This is useful if you want exposure to both tokens, but most users will prefer buying the specific token they want on the orderbook.

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Epochs

Each strategy runs in fixed epochs (typically 8-12 weeks) that progress through three stages:
1

Active

ACTIVEOrderbooks are open. Credits accrue. The strategy is running.
2

Settling

SETTLINGStrategy unwinds. No new deposits. Orderbooks open for secondary trades only (no new minting).
3

Matured

MATUREDFinal NAV and points are published. ST redeems for USDC. EPT claims .
Epochs are independent. There is no automatic rollover. It is up to the protocol to decide whether to start a new epoch for a strategy. See Epoch Lifecycle for details.

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Strategies at Launch

We launch with strategies on supported perp DEXes (Paradex, Hyperliquid, Pacifica, and others):
  • Bluechip Funding Arbitrage: captures funding rate spreads across major pairs
  • Long Bitcoin: directional BTC exposure through perpetual contracts
Each strategy has its own vault, its own ST, and one EPT that covers all exchanges where it earns points.