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Invest (coming soon)
Borrowers and traders can tap into permisionless leverage to invest across DeFi
Arcadia allows users to take leverage (borrow up to 10x the value of their deposited collateral) and in a permissionless way use both the initial collateral and the borrowed funds in external dApps. This gives you the flexibility to vote, trade, stake, earn yield, and claim airdrops using leveraged assets. The only condition that needs to be met is that the total value of all your assets is enough to cover your debt by the end of the transaction, in order to keep your margin account in a healthy state.
Arcadia's margin account is the core primitive that enables permisionless leverage. You can think of an Arcadia margin account as a smart contract wallet where a user can deploy both their own assets and additional credit across the broader blockchain ecosystem.
Anyone is free to build their own leveraged strategies, and even automate them! Building you own leveraged strategies, however, might require some technical knowledge. Therefore, we will be introducing pre-made leverage strategies in our dApp for users to invest their capital and borrowed funds (leverage) in one or more DeFi protocols with a single click.
The two first strategies we will be introducing are Leveraged Yield Farming and Leveraged LPing.
A non-technical user who wishes to make the most out of their investments across protocols using Arcadia's permisionless leverage might choose to invest in our single-click leveraged strategies. In this case, the flow looks something like this:
- 1.User opens a margin account and deposits collateral asset(s). Borrowers can deposit a single asset or a combination of assets in the same margin account (up to 15 different collateral assets at once)
- 2.User selects a given strategy from our pre-made list and executes it via a single transaction.
The typical flow for a technical user that wishes to explore the power and flexibility of Arcadia's permisionless leverage might look as follows:
- 1.User opens a margin account and deposits collateral asset(s). Users can deposit a single asset or a combination of assets in the same margin account (up to 15 different collateral assets at once)
- 2.User defines the different actions they want (withdraw funds, borrow additional funds, interact with one or more external DeFi contract (multi call), repay debt or deposit funds).
- 3.Encode the calldata of different actions in one bytes object.
- 4.Execute all the different actions in one transaction by passing the encoded calldata to the function 'doActionWithLeverage' for the users margin account.
In order to fully capitalize on investment opportunities that require leverage, users were forced to either repeatedly borrow and deposit over multiple over-collateralized lending protocols or stick to centralised platforms.
Centralised platforms are not transparent or trustless, and leave users vulnerable to security breaches and lack of control over their assets.
Over-collateralized lending protocols solve this, but introduced capital inefficiencies: users need to put in more capital than they can take out as a loan while leaving their collateral assets sitting idle.
Arcadia fixes this by allowing anyone to borrow more capital than you put in AND actively use assets while being held as collateral. Simply put, Arcadia is the most efficient way to get and use leverage on-chain.