Arcadia is a decentralized and composable margin protocol that allows users to lend, borrow, and trade assets permisionlessly. Borrowers can access up to 10x more capital than their initial collateral and use both their deposited collateral assets and the borrowed assets to permisionlessly interact with any other protocol, all while retaining full ownership of their assets.
The Arcadia protocol features a number of innovations in DeFi, including flash withdrawals, permisionless automated asset management, upgradable margin accounts, multi-tranche pools, and more.
Many different types of users can interact and benefit from Arcadia:
- Borrowers: borrow against the value of your entire portfolio of assets, including NFTs, ERC4626 tokens and LP tokens.
- Traders: trade spot with leverage, advanced order types, and cross-margining, with the lowest slippage guaranteed and completely self-custodial.
- Lenders: provide liquidity and earn passive yield.
- 1.Non-custodial: Arcadia borrowers deposit assets in a margin account. This margin account is a user-owned smart contract that holds both your deposited collateral and the borrowed capital. Arcadia cannot take ownership and/or any action on the user's behalf.
- 2.Access leverage efficiently: In order to capitalize on investment opportunities that require leverage, users are forced to either repeatedly borrow and deposit over multiple over-collateralized lending protocols or stick to centralized platforms. This is not capital efficient.
- 3.Unlock liquidity in long-tail assets: Most users hold more than only ERC20 assets in their portfolios. However, if they want to use assets other than simple ERC20s as collateral they are forced to swap for an ERC20 token. As a result, there are billions of dollars worth of liquidity locked in underutilized quality assets, like Curve LPs and Uniswap V3 LPs.
- 4.Actively manage collateral assets: Arcadia allows users to rebalance their portfolio, or put assets to work in other DeFi protocols, even if those assets are used as collateral to back debt and without the need to unwind positions.
- 5.Borrow more than your initial collateral value: Current borrowing options in DeFi employ over-collateralized margining, which means you need to put in more capital than you can take out as a loan. Example: deposit $100 and only borrow up to $75. This is not capital efficient and limits potential use cases for borrowers.