Advanced Strategies
Last updated
Last updated
At Arcadia we not only support curated strategies, but also allow users to enter any LP of which we support the underlying tokens. This allows a user to pick a pool and range, and their leverage to open up a leveraged LP position in any of their favorite LP pools.
To get to the overview of all the LP pools navigate to the Farm via the link in the navbar on top of the page. When you do this you should be greeted by the following page:
On this page you see an overview of all the pools Arcadia currently supports and some information about them. There is are filters on top where you can filter between Uniswap, Staked Slipstream, Slipstream and Aerodrome V1 pools. You can sort by APY, TVL or Volume.
Let’s open a position in Staked Slipstream wETH-Aero. Either scroll until you find the one you think you like or filter on “Staked Slipstream” and search on Aero.
You can see some information about this pool:
Logo.
Protocol + Pool.
APY: the range of APYs are shown as "base APY - max leveraged APY" based on the 7 day history of the pool.
TVL: TVL of the pool.
Max Leverage: this is the maximum leverage you can take in an arcadia account for this asset.
Volume: the amount traded in the past 24hr.
When you click on the pool it navigates you to the following page.
This is the general overview of an LP pool on Arcadia's Farm pools. On this page you can set the ranges to provide liquidity in (for concentrated pools only), the input amount and the leverage. If you don’t have an account yet or need an account that has a different debt token than the one you have, you can also do that here.
Let’s first select which debt token we’d like to use to open our position. Choosing this is important, as it will determine the interest rate, maximum leverage available and the asset you will be borrowing - and thus shorting!
You can do this by selecting USDC, wETH or cbBTC in the top right of the page. After you selected a debt token, you can create an account with this specific numeraire. If you already have an account you can use any of those. The debt token of the existing account should be clear by the icon.
If you use an existing account that already has some assets in it (and potentially open debt), you can choose to only use those assets and transform them into the newly selected pool. If you have a new account or want to add extra assets, you can do that by checking the "Deposit Extra funds" button. If you pressed this button an input field should appear that allows you to deposit wETH, USDC, ETH or cbBTC. Here you can input the amount you want to add to your account when opening this position.
Selecting the range is the next important step for concentrated liquidity pools. You can either use one of the 5 predetermined ranges from Very Narrow to Very Wide or select a custom range. To select a custom range you pick one of the 5 pre existing ranges that comes closest to what you want and then press custom. Two things will happen: A + and - button will appear in the set price range input and two drag-able buttons will appear on the liquidity graph. You can use either or both to fine-tune your preferred range. You can switch the base asset by clicking the "switch to ..." button on the top of the range selector window. By changing the range in which you will provide liquidity, the estimated APY on the top of the page will also change.
As a general rule, the more narrow the range is, the higher the APY will be. Note however that in narrow ranges, you will more likely be out of range and not earn any yield, and will have a higher impermanent loss. Wider ranges need less rebalancing and will therefore have lower impermanent loss, but will earn lower yield.
When you have selected your range, your account, your deposit amount and your leverage, you are (almost) ready to confirm it. If you selected ETH as a deposit asset, it'll need to be converted into wrapped ETH so Arcadia can use it. If applicable, you may need to approve the amount you selected, and lastly you can outline the transaction. This outline transaction screen is the familiar screen where you see exactly what would happen if you’d trigger this transaction. If you're happy with what's shown, press the confirm button to trigger a wallet action. Sign the transaction in your wallet and it will be executed onchain. You first advanced strategy is opened. The page will automatically navigate to your account page where you can now see your freshly minted LP position earning yield.
