First Strategy
Last updated
Last updated
As new DeFi user you might be overwhelmed by all the new technical jargon you come across and may be unfamiliar on starting to earning yield by prodividing liquidity. Arcadia is designed to simplify your journey into earning yield by providing two options to get started. The first are curated strategies that allow you to enter well-performing liquidity pools in a few clicks. The second is for slightly more advanced users and allow you to pick any single LP (provided Arcadia supports the underlying assets) and also enter it with a few clicks.
When you go to arcadia.finance for the first time you will be greeted by our home page. Here you’ll find a few brief sections on what we’re all about and even a list of our curated strategies that we’ll talk about later. Be sure to go over each section. Our focus today however will be on the Navigation on top of the page.
To open your first position on Arcadia you must first connect your wallet of choice to our application. You can do this by pressing the “Connect Wallet” button. Make sure the selected chain is Base L2.
Scroll down on the home page or navigate to the Strategies page and choose one of the curated strategies. These are strategies hand-picked by our algorithms and automatically choose the best underlying assets for the goal of each strategy.
For our example we’ll use Delta-Neutral USD. As explained on the strategies card this means we will take USD debt to open up a leveraged liquidity position in a liquidity pair of two USD-pegged stable coins. This will earn yield (from the trading happening on the underlying liquidity pool) in USD-denominated stablecoins.
Click on ‘Open Strategy’ and a modal will pop up. This modal will guide you through 3 steps to easily open up your curated strategy. Step 1 will prompt you to input any amount of either USDC, WETH, ETH or cbBTC. You must regard the asset you deposit as a certain "value": the asset you deposit will be converted, together with any taken leverage, into the liquidity position on which you'll be earning yield. Which asset you deposit will thus have no influence on the yield nor interest rate! You will see a table which displays exactly what assets are going to be or created. After you chose your amount, click confirm to be brought to the next step.
In step 2 we select the account to work with, or create a new one if you don’t have an account. An Arcadia account serves as a non-custodial smart contract wallet, will hold all the collateral assets and keeps tracks of open debt. Approve the assets for our transaction and preview what will exactly happen in the transaction by clicking Outline transaction button.
After pressing this button. An outline of the transaction will be generated and presented in step 3. In this example I use 15 USDC to open a delta-neutral usd position.
This step outlines what will happen in the protocol when your transaction is submitted. In this example you can see 15 USDC is being used from my wallet. Some of it is swapped into USDT and together with the leftover USDC a new Slipstream position is created and staked. Now the only thing that remains is pressing Deposit and signing the transaction in your wallet!
Congratulations, you just opened your first Arcadia Position. Follow the other tutorials to learn more about how to open your own strategies, how to manage your newly minted LP positions and more.
