Understanding the AraFi Ecosystem

6 min readMay 29, 2023

Welcome to a new era in the world of decentralized finance (DeFi). We are on the brink of unveiling something fresh and innovative — a transformation characterized by a new vision, a new identity, and a new approach to the intricacies of the Defi.

This journey commences with AraFi, a novel protocol set to make waves in the DeFi space. While our new brand identity won’t fully come to light until the third article of this series, the essence of this metamorphosis reverberates throughout our discussion. We invite you to join us as we unfold the complexities of the AraFi ecosystem within the larger Metis and eventual Omni-Chain environment, providing you with insights into its players, their roles, and their interactions. Let’s commence this expedition with a deep dive into AraFi’s ecosystem participants, as we prepare you to partake effectively in its promising future.

This article will delve into the AraFi ecosystem, highlighting its key players and outlining the roles they play within the broader Metis environment.

AraFi’s Key Players

  1. Ara Holders and Lockers

Ara holders and lockers form the backbone of the AraFi ecosystem.They will be uniquely positioned to gain yield, fees, and, more importantly, the ability to govern the ecosystem through locking.

It’s important to understand that this is not a short-term play. Ara holders form an exclusive group that recognizes the immense value in having governance over future ecosystem projects.

To facilitate a healthy formation of protocol delegation, AraFi will utilize a rolling governance model where users will gain more access to influence decision types as the ecosystem scales.

This authority allows them to participate actively in shaping the ecosystem’s direction and policies.

Although AraFi’s model does not currently include the concept of bribing it’s envisioned that in the future, this will be an effective means for influential individuals and DAOs to influence the ecosystem’s direction, particularly in the context of the AraFi’s governance module. This might be especially true when these players find themselves unable to amass significant amounts of Ara tokens due to market dynamics.

It’s important to understand that being an Ara holder or locker is a forward-looking investment. These players are well-positioned to shape the future of the AraFi ecosystem and stand to gain significantly from its success.

2. Maiadao Eco (Hermes, Maia)

Our next key player, Maiadao Eco, currently the leading DEX on Metis, comprising Hermes and Maia, holds an influential position in the AraFi ecosystem. Maia and Hermes token holders and stakers are poised to gain significantly as the AraFi ecosystem evolves.
The system AraFi employs is designed to function as a metaphorical ‘black hole’ for Maia and Hermes tokens. This mechanism is expected to secure upwards of 10% of the circulating supply of Maia and Hermes tokens, creating meaningful scarcity within the ecosystem.

This scarcity results from people minting AraFi’s wrapped assets, aMaia and aHermes. Any Maia or Hermes tokens accumulated by AraFi through minting won’t ever return to the market. Instead, they will be max-locked as veHermes, sMaia, in the future transitioning to bHermes and vlMaia.
This mechanism of locking a substantial portion of the Maia and Hermes supply will inevitably lead to an increase in the value of these tokens.

Additionally, Maia and Hermes benefit greatly from having a governance aggregator that is completely aligned with their vision. The more Maia and Hermes tokens are locked, the more influence AraFi gains, leading to the optimal functioning of the ecosystem. This alignment with the Maiadao Eco vision ensures that the ecosystem continues to work effectively and sustainably.

3. aHermes and aMaia Stakers

The aHermes and aMaia stakers are the holders of AraFi’s wrapped tokens that focus on yield optimization, functional automation, and unlocking liquidity.

AraFi provides the option to mint aHermes and aMaia at a variable ratio by contributing Hermes and Maia tokens, respectively. Furthermore, AraFi will incentivize a liquidity pool that will allow for the conversion of aHermes and aMaia back to Hermes and Maia, ensuring that liquidity is maintained within the ecosystem. These are modular systems that take into consideration possible changes to Maia eco assets such as the involvement of bHermes assets.

To remain modular into the future aAssets will always represent the value accrual of Ara’s governance intake, allowing the ratio of minted assets to received assets to change in response to protocol asset changes. Additionally, with these assets, AraFi will be positioned to offer higher yields in the upcoming Vault products.

4. Hummus Protocol

The Hummus protocol and its holders play a similar role to Maia and Hermes in the AraFi ecosystem. Just like aMaia and aHermes, blackholing HUM will result in a significant portion of the HUM’s circulating supply being locked, contributing to the token’s scarcity and potential value appreciation. The locking mechanism operates through a process akin to the minting of aMaia and aHermes. Any Hum tokens accumulated by the protocol won’t re-enter the market but will be max-locked.

As for the Hum Protocol itself, having a fully aligned aggregator greatly benefits its vision, as it’s in the best interest of both protocols that the ecosystem thrives.

5. aHum Stakers

As with aMaia and aHermes, aHum stakers will benefit from a higher yield than their native counterparts. Additionally, they will benefit from automation by not having to manage their gauge vote and have a liquidity pool from which to generate yield and exit the market if required.

6. Liquidity Pool Stakers

Liquidity Provider(LP) stakers play a crucial role in the AraFi ecosystem. Properly incentivized, LP providers are extremely beneficial to an ecosystem as they help minimize price volatility.

AraFi’s LP providers will have a variety of choices that will all benefit from significant yield and arbitrage opportunities, as well as double token exposure. Whether seeking high yields, exposure to assets at a potential discount, exploring exit strategies for a particular asset, or capitalizing on arbitrage possibilities, these pools offer diverse benefits.

To guarantee ample liquidity for all parties involved, these pools will be incentivized by leveraging Hermes’s bribing model and future vault systems.

Closing Thoughts

Through the lens of this article, we trust that we have shed light on the various cogs of the AraFi machinery. We’ve introduced you to key players within the ecosystem and given you a glimpse into our protocol design philosophy — a win-win-win approach for all involved parties.

As we continue to unveil our innovative offerings, our subsequent articles will delve deeper into our unique tokenomics and the value proposition of aggregating governance within the AraFi ecosystem.

In the ever-changing arena of the Metis DeFi landscape, AraFi aims to assert itself as an influential player. Its unique ecosystem, formed by integral contributors ranging from Ara Holders and Lockers to LP Stakers, works synergistically towards stability and growth. As AraFi grows and matures, these roles and interrelationships will form the cornerstone of its success.

As we move closer to our launch, our priorities are firmly centered on transparency and education. Alongside this, we are also preparing for a significant transformation — a new brand identity that we’re excited to reveal soon. But before that grand reveal, our focus remains on AraFi and its vibrant ecosystem. We invite you to expect more enlightening articles in this series soon. If you have any questions, or if the anticipation of our new brand unveiling is stirring curiosity within you, we encourage you to join us on our Discord. We’re always here to assist and eagerly look forward to engaging in insightful discussions with you. Your active involvement and keen insights are what make our ecosystem flourish!




AraFi is a sophisticated Omni-Chain governance aggregator designed to optimize the potential returns and governance capabilities of DeFi stakeholders.