What is Archer Trader Extractable Value (Archer TEV)?

Archer DAO is the first project to bring the concept of Trader Extractable Value to market. And so, the team has coined the concept ‘Archer TEV.’

A 6-week Archer Swap rewards campaign — powered by Archer TEV — was voted in by the community yesterday.

We’ll dive in to how it all works in a moment.

But first, let’s quickly recap what Archer Swap already achieves (before Archer TEV):

• Helps protect users from front-running and sandwich attacks
• Failed transactions have zero cost
• Users can cancel trades at zero cost

These benefits can be classified as ‘MEV protection.’ We have aptly named our solution ‘Archer MEV Shield.’

Now that that’s out of the way, what is Archer TEV?

In essence, Archer TEV allows traders to earn ARCH from their usual trading activity through Archer Swap. It is an income-generating feature, as opposed to a loss-prevention one. Archer TEV can also be understood by calling it ‘Trader Extractable Value Profit Sharing.’

What are the mechanisms that allow this?

Archer Relay, a private transaction router which generates automated rebalancing transactions (using backrunning bots) for syncing market prices after big trades.

How is TEV possible in the first place?

Due to arbitrage opportunities that traders create following their large trades.

So how exactly does it work?

When traders make big swaps, they open big arbitrage opportunities. Normally, arbitrage bots capture this value. With Archer Relay, the trades are private, so the Archer network captures that value instead and distributes it to traders.

Traders generate value whenever they create arbitrage on the Ethereum network. Archer Swap helps capture this value and deliver it back to traders. Trader Extractable Value.

Here’s a simple example:

1. A trader submits a purchase for $10,000 worth of a token on Archer Swap (using the Uniswap liquidity pool)
2. This causes a temporary imbalance in the Uniswap token pool.The token price on Uniswap relative to other markets is higher
3. Because Archer Swap was used, the transaction is sent to the Archer Relay
4. Archer’s backrunning bots are privately alerted of the arbitrage opportunity and will execute if profitable
5. The value captured from this arbitrage transaction is sent to the Archer Treasury where it is later distributed to Archer Swap users

The amount of TEV generated through trades is variable. It is dependent on the size of the liquidity pool the user is transacting with, and how large the trade is.

Do other MEV projects also offer TEV?

No. To our knowledge, Archer is the first and only MEV project to offer TEV profit sharing to its users.

So what are you waiting for? Start using Archer Swap to take advantage of the best trader perks on the market.

Power to the traders! Welcome to Archer TEV.

TL;DR

• Archer Swap is the first project to bring TEV Profit Sharing to market in the form of Archer TEV
• Archer TEV is a new revenue-generating feature, as opposed to a loss-prevention feature
• A 6-week $ARCH and Archer Swap buyback and rewards campaign launched yesterday — trade now on Archer Swap to qualify