Strategists

Strategists select one of the four curated strategies to earn yield using AMMs. They create a position with both their own assets and borrowed assets.

How does it work?

Strategists are users looking for yield, with certain objectoves and/or market outlooks, who see AMMs as a good way to earn yield, but don't have the technical expertise and/or time to monitor and manage individual pools.

For these type of users, Arcadia offers a curated set of easy to use strategies that allow them to enter well-performing AMM liquidity pools in a few clicks. The strategies use only stable coins or tokens related to major assets (such as ETH and BTC).

Arcadia offers currently four strategies:

• Delta neutral USD: keep USD value of portfolio as stable as possible, while earning yield.

• Delta neutral ETH: keep ETH value of portfolio as stable as possible, while earning yield.

• Bullish Crypto: USD value of portfolio increases when total market cap increases, while earning yield.

• Bearish Crypto: USD value of portfolio increases when total market cap decreases, while earning yield.

For a detailed guide how to enter in a strategy, see here.

Where does the yield come from?

Depending on the type of Liquidity Positions that are used within the strategy, there are two different possibilities:

Non-staked Liquidity Positions

All yield comes from trading fees that traders pay when they swap through the underlying AMM pools.

Staked Liquidity Positions

Holders of staked positions, such as staked Aerodrome, receive token emissions.

Depending on the staking mechanism these emissions can be on top of the yield from trading fees. Or, as is the case with Aerodrome, stakers choose to earn emissions instead of trading fees.

What are the risks

All Strategists are exposed to the following risks:

• Smart contract risks

• Market risks

• Impermanent loss

And depending if they use leverage or not:

• Interest rate risk (interest rate can exceed yields)

• Liquidation risk