How can ArithFi make profits through 0 trading fees?

Many users are asking how ArithFi, with its offering of zero fees and zero slippage in futures trading, manages to make profits? The answer is that ArithFi does not need to make profits.

ArithFi operates on a currency model, not a corporate model. Unlike traditional companies, it does not seek to maximize shareholder benefits. Instead, it generates value by providing trading services and leveraging its unique token economy model.

ArithFi aims to develop its ATF token into the third class of assets after BTC and ETH by providing derivatives trading services. Therefore, the core of ArithFi is to give value to the ATF token, rather than generating fixed profits.

Here are the sources of value for the ATF token:

1. Utility generated from trading services as a source of value

   ArithFi offers users a trading experience with significantly lower costs compared to other exchanges, which is the core advantage of its trading services. The efficiency, security, and convenience experienced by users when trading futures, options, and other derivatives on the platform constitute the core value of ArithFi.

2. Traders' accumulated losses converted into token burns

   Statistics show that most individual investors typically struggle to beat the market. In ArithFi's economic model, this phenomenon is cleverly turned into part of the token's value. When traders incur losses, these $ATF tokens are sent to a smart contract and "burned." This burning mechanism reduces the total supply of tokens, theoretically increasing the scarcity and value of the remaining tokens, bringing potential profits to the platform and token holders.

3. Cost efficiency and decentralization advantages

   As ArithFi is not a profit-oriented corporate model but a currency model aimed at providing low-cost services, its operational costs are expected to become negligible as the platform becomes fully decentralized through the use of layer2 technology. Decentralization not only means lower operational costs but also more secure settlement services and broader market participation. In this way, the services provided by ArithFi will have a cost advantage in the market, generating sustained demand for the project.

In summary, ArithFi combines efficient trading services, a smart contract token burning mechanism, and low-cost decentralized operations. These factors collectively ensure that ArithFi maintains sustainable competitiveness in the fiercely competitive fintech industry while providing valuable services to users. As decentralized finance continues to evolve, ArithFi presents a new economic model that could have a profound impact on the entire industry.