Fee Rebates
Introduction
As outlined in the Arcadia Recovery Plan, Arcadia users can redeem Recovery Tokens ($ART) for protocol fees. Fee rebates are denominated in and redeemable for USDC.
There are two Fee Rebate redemption mechanisms, active and passive. Active rebates allow for the fastest value redemption, while passive rebates are hands-off and do not require use of the protocol.
Recovery Tokens can optionally be swapped for other tokens on third party DEXs ($ART is a standard ERC20 token). Note that Arcadia does not manage these DEXs, neither guarantees liquidity nor price.
Active Fee Rebates
Active users of the Arcadia protocol can rebate up to 100% of the costs they incur on the following fees:
Yield success Fees: This is the fee charged to users on the yield generated through the protocol.
Fees paid for the Auto-Rebalancer and Auto-Compounder: These are the fees charged to users on the amount swapped when using the automated rebalancing and/or compounding.
Mechanism
The accounting and distribution follows a schedule measured in epochs. Each epoch counts 7 days, with a new epoch starting every Monday at 12:00 UTC.
During an epoch I, all transactions that generate fees are accounted for in the asset in which the fee is collected.
At the end of epoch I, the total amount of fees collected per token and per user is calculated, and all collected tokens are swapped to USDC.
Each user is eligible to redeem up to an amount of USDC equivalent to their share of fees collected: If a user generated 10% of the total fees collected for a certain TOKEN, then they will be eligible for 10% of the USDC that was received after swapping all collected TOKEN to USDC.
Users have 1 epoch (during epoch II) to redeem their Recovery Tokens for USDC.
Non-redeemed fee rebates are not rolled over. After epoch II ends, users will no longer be able to redeem the fee rebates generated during epoch I.
Passive Fee Rebates
Recovery Token holders who do not actively use the Arcadia protocol or prefer a hands-off approach can passively redeem their Recovery Tokens for USDC.
To do so, holders stake their Recovery Tokens through the Arcadia dApp.
Mechanism
The accounting and distribution follows the same epochs as the Active Fee Rebates.
After epoch II ends, the total amount of non-redeemed USDC from epoch I is calculated.
Up to 50% of the remaining USDC is distributed to $ART stakers pro rata their stake: If you hold 15% of the staked Recovery Tokens, you receive 15% of the distributed USDC.
Users can at all times stake and unstake their Recovery Tokens. There are no penalties or waiting periods.
Last updated