Arch Ethereum Web3: Decentralized Index Investment Platform for the Web3 Ecosystem

What is Arch Ethereum Web3

Friends, imagine if you wanted to invest in the entire internet industry but didn’t know which company’s stock to buy—wouldn’t that be a headache? You might wonder, is there a way for me to buy shares of many representative companies at once, so I don’t have to worry about picking and can still share in the growth dividends of the whole industry?

In the blockchain world, Arch Ethereum Web3 (abbreviated as WEB3) is just such a “basket” investment tool. It’s not a brand-new blockchain, nor is it a complex application platform, but rather a special kind of token. You can think of it as a “Web3 index fund.”

Specifically, the Arch Ethereum Web3 token contains a series of governance tokens from major decentralized protocols. These governance tokens are like the “stocks” of influential “companies” in the Web3 world. By holding the WEB3 token, you are essentially holding important components of the Web3 ecosystem at the same time, thereby tracking the performance of the entire Ethereum Web3 index.

This project mainly operates on the Ethereum and Polygon blockchain networks, aiming to reflect the returns of the entire Web3 ecosystem. It’s like a carefully selected investment portfolio, providing you with market-weighted exposure to a broad range of industries in the Web3 field, with its component tokens representing about 70% of the market share in the Ethereum Web3 index.

Project Vision and Value Proposition

The core vision of Arch Ethereum Web3 is to provide a simple and convenient “entry point” for those who want to participate in the Web3 wave but feel confused about choosing specific projects. Its value proposition is mainly reflected in the following points:

• Simplified Investment: For ordinary investors, understanding and selecting from hundreds or thousands of Web3 projects is extremely difficult. The WEB3 token greatly lowers the participation threshold by packaging a basket of high-quality governance tokens, allowing you to easily gain overall exposure to the Web3 ecosystem.
• Risk Diversification: Just like traditional index funds, the WEB3 token helps investors diversify the risks of single projects by holding multiple assets. Even if one project underperforms, the good performance of others can partially offset the losses.
• Market Tracking: Its goal is to track the returns of the Ethereum Web3 index, which means if you are optimistic about the development of the entire Web3 industry, the WEB3 token allows you to share in the dividends of this major trend without frequently adjusting your portfolio.

Technical Features

As an index token, the technical features of Arch Ethereum Web3 are mainly reflected in its operational mechanism, rather than having an independent consensus mechanism or complex underlying architecture like a public chain. You can think of it as an “automated fund manager” managed by smart contracts.

• Based on Existing Blockchains: The WEB3 token is deployed on the mature Ethereum and Polygon blockchain networks. This means it leverages the security and decentralization features of these blockchains.
• Smart Contract Management: Its operation relies on smart contracts. Smart contracts are code stored on the blockchain that automatically execute when preset conditions are met. Here, smart contracts are responsible for managing the composition and weight adjustment logic of the underlying governance tokens included in the WEB3 token, ensuring it accurately tracks the Web3 index.
• No Independent Consensus Mechanism: Since WEB3 itself is a token, it does not have an independent consensus mechanism. A consensus mechanism is the way all participants in a blockchain network agree on the validity of transactions, such as Bitcoin’s “Proof of Work” or Ethereum’s “Proof of Stake.” The security of the WEB3 token is guaranteed by the consensus mechanisms of the Ethereum and Polygon networks on which it operates.

Tokenomics

The tokenomics of Arch Ethereum Web3 mainly revolve around its characteristics as an index token:

• Token Symbol: WEB3
• Issuing Chains: Ethereum and Polygon (POS)
• Maximum Supply: 124,829.00 WEB3 tokens.
• Fully Diluted Valuation (FDV): As of now, the fully diluted valuation of Arch Ethereum Web3 is about $314,989.79. FDV refers to the total market value calculated at the current price if all tokens have been issued and are in circulation.
• Circulating Supply: According to CoinMarketCap, its self-reported circulating supply is 128,414 WEB3 tokens, but this data has not been verified by the CMC team.
• Token Utility: The main utility of the WEB3 token is as an investment tool, allowing holders to gain overall exposure to the Web3 ecosystem. It does not have governance functions itself; its value comes from the value of the underlying governance tokens it contains.
• Inflation/Burn: There is currently no clear mention of inflation or burn mechanisms for the WEB3 token in the available information.

Team, Governance, and Funding

Since Arch Ethereum Web3 (WEB3) is an index token, it does not have an independent “project team” to develop the underlying protocol or maintain the network. It is designed and managed by an investment project called “Arch,” which focuses on designing indices that track blockchain assets.

• Core Members and Team Characteristics: Specific information about the core members of the Arch project has not been disclosed in detail in public sources. Typically, such index products are maintained by teams of professional financial analysts and smart contract developers who manage the composition of the index and the operation of the smart contracts.
• Governance Mechanism: The WEB3 token itself does not have governance functions. The underlying governance tokens it contains, such as AAVE, UNI, etc., each have their own independent governance mechanisms, and community members holding these underlying tokens can participate in protocol decisions through voting.
• Treasury and Funding Runway: Due to the nature of the WEB3 token, it does not involve a traditional project treasury or funding runway. Its value is directly linked to the performance of the Web3 index it tracks and its underlying assets.

Roadmap

For index tokens like Arch Ethereum Web3, there is usually no “roadmap” in the traditional sense, because it is not a software project that requires continuous development of new features or new versions. Its “development” is more reflected in the evolution of the Web3 index it tracks, as well as updates and adjustments to its underlying assets.

Therefore, we cannot provide a timeline listing the historical milestones and future plans of the WEB3 token. Its “planning” is more about the maintenance and optimization of the Web3 index by the Arch project, such as:

• Adjustment of Index Components: Periodically or non-periodically adjusting the types and weights of governance tokens included in the index according to the development of the Web3 ecosystem and market changes.
• Expansion of Cross-Chain Deployment: In the future, consideration may be given to deploying the WEB3 token on more blockchain networks to expand its coverage.

Common Risk Reminders

Investing in any crypto asset comes with risks, and Arch Ethereum Web3 is no exception. Before considering participation, be sure to understand the following common risks:

• Market Volatility Risk: The cryptocurrency market is known for its extreme volatility. The value of the WEB3 token will be directly affected by the Web3 index it tracks and the price fluctuations of the underlying governance tokens, which may result in loss of investment principal.
• Smart Contract Risk: The operation of the WEB3 token relies on smart contracts. If the smart contract has vulnerabilities or is attacked, it may result in asset loss.
• Index Tracking Error Risk: Although WEB3 aims to track the Web3 index, due to factors such as market liquidity, transaction costs, and rebalancing mechanisms, actual performance may deviate from the index.
• Underlying Asset Risk: The underlying governance tokens included in the WEB3 token each face their own project-specific technical, operational, competitive, and regulatory risks. These risks will indirectly affect the value of the WEB3 token.
• Liquidity Risk: If the market liquidity of the WEB3 token is insufficient, you may not be able to buy or sell quickly at an ideal price.
• Regulatory Risk: Regulatory policies for cryptocurrencies are still evolving globally, and future policy changes may negatively impact the value and availability of the WEB3 token.
• Not Investment Advice: The above information is for educational purposes only and does not constitute any investment advice. Be sure to conduct thorough independent research and consult a professional financial advisor before making any investment decisions.

Verification Checklist

Transparency is important in the blockchain world. Here are some key links and activities you can use to verify information about the Arch Ethereum Web3 project:

• Block Explorer Contract Addresses:
  • Ethereum network contract address:
    0xe8e8486228753e01dbc222da262aa706bd67e601
  • Polygon POS network contract address:
    0xbcd2c5c78000504efbc1ce6489dfcac71835406a

  Through these addresses, you can view the transaction records, holder distribution, and other information of the WEB3 token on the Ethereum and Polygon block explorers.

• GitHub Activity:

  Since Arch Ethereum Web3 is an index token rather than an independent blockchain project, it usually does not have its own GitHub repository to display protocol code activity. Its smart contract code may be maintained by the Arch project team, but the specific public status requires further inquiry into the official materials of the Arch project.

• Official Website:

  According to search results, the Arch project has a website: archfinance.io. You can find more information about the Arch project and its index products on this website.

Project Summary

In summary, Arch Ethereum Web3 (WEB3) is an index token designed to simplify investment in the Web3 ecosystem. By packaging multiple major decentralized protocol governance tokens together, it provides investors with a convenient way to track the overall performance of the Ethereum Web3 index and diversify the risks of single-project investments.

You can think of it as an “ETF” (Exchange-Traded Fund) in the Web3 world, allowing you to participate in the growth of the entire industry without having to research every Web3 project in depth. It operates on mature blockchains such as Ethereum and Polygon, using smart contracts to manage its underlying asset portfolio.

However, as a crypto asset, the WEB3 token also faces challenges such as market volatility, smart contract vulnerabilities, tracking errors, and underlying asset risks. Be sure to conduct comprehensive research before considering any investment, and remember this is not investment advice. For more details, please research the official materials and related information of the Arch project yourself.