Strategies

Traders, Farmers and AMM LPs use Arcadia to build and execute Yield Strategies. Unlike other yield products, Arcadia let you construct and combine multiple different yield strategies in a single position with a single transaction. That is, users can open a single position and deposit assets in different pools and farms simultaneously, stacking multiple layers of yield from multiple protocols together in one position.

For example, users could deposit ETH as collateral in their Account and borrow additional ETH to engage in leverage staking to earn staking rewards. Simultaneously, they could provide liquidity in an wETH-rETH and wETH-cbETH pair on Uniswap V3, capturing additional trading fees on top of the staking fees. The different on-chain action to build such a position (deposit, borrow, stake, mint Uni-V3 positions) would be executed in a single transaction and from a single collateral account. This approach is akin to a flash loan on steroids, but without the necessity of building a custom smart contract for each strategy.

Similarly, a liquidity provider on an AMM would be able to collect trading fees while staking one of the paired assets in a farm to collect staking rewards too. They could hedge risks by borrowing one of the underlying assets or choose to enhance their returns using leverage while still accruing every layer of underlying yield.

At launch, we will provide a curated list of yield strategies in the front-end. You can then select one or multiple strategies from that curated list that best fit your risk and return objectives. See the list of curated strategies available at launch here.

After launch, however, you will be able to customize strategies. In other words, users will have the freedom to pick and choose the strategies they want to include in their Account, whether that is a specific set of combined assets/LPs or something more creative. You can think of it in a similar way to how you shop on Amazon —choose one or multiple items, add selected items to your shopping cart, and pay for all your items in one transaction —but replacing ‘items’ with ‘yield’.