Arcadia ELI5

Arcadia Finance
3 min readFeb 17, 2023

--

What we do

Arcadia is a DeFi protocol that enables you to trade with up to 10x leverage on the top DEXes through user-owned margin accounts. Deposit multiple assets simultaneously, borrow up to 10x more funds, and swap via the most liquid DEX with minimal slippage -all while retaining complete ownership of your assets!

Why we’re better

  • Lowest slippage guaranteed: we execute every swap via the most liquid DEX.
  • Capital efficient: Access to leverage equal or greater than your deposited assets. Example: deposit $1 and take out an additional $5 in a permissionless way.
  • Capital efficient²: Borrow against the value of your entire portfolio of assets, including NFTs, ERC4626 tokens and Uniswap V3 LP tokens.
  • Intuitive and built for pro traders: Same feel and performance of CEXs, including advanced order types and cross-margining, while remaining completely self-custodial.
  • Gas efficient: users can withdraw, borrow, trade and deposit all in one transaction; Arcadia performs just a single health check at the very end.
  • Community first: Early contributors and advocates of the protocol can be compensated for their efforts thanks to our referral program.

Cool and innovative features (a lot of DeFi firsts!)

  • Flash-withdrawals and flash-actions: Similar to flash-loans, users can perform multiple actions in a single transaction. For example, you can withdraw all assets from an account (even with debt!), interact with any (or multiple) DeFi protocol(s), and deposit the recipient tokens at the end. Unlike flash-loans, however, the deposited tokens can differ from the assets withdrawn, the only requirement is a healthy account at the end.
  • Automated asset management: Users can connect their Margin Account with keeper networks and automate actions (swap, stake, mint…) in a fully permissionless way.
  • Trade with real limit orders: Set an upfront price and an upfront size, no unknown slippages.
  • Upgradable Margin Account: Arcadia’s Margin Account use a self-developed new proxy pattern. Users can, at their own discretion(!), upgrade their Vault when new features are launched. No need to migrate assets or close positions.
  • Multiple Risk tranches per lending pool: LPs of the protocol can choose the risk and returns for providing liquidity.

For the Builders

  • Any protocol or builder can integrate with our Vaults through flash-actions. You can withdraw any asset from active Vaults, with or without debt, and use the assets in any external DeFi protocol or smart contract, without the need for permissioned connectors. The only requirement is that the recipient tokens are on the allow-list and sufficient tokens are deposited at the end of the transaction to keep the Vault in a healthy state. Builders can include their own fees within such a connector.
  • Our Margin Accounts can also be used to manage counterparty risks for third-party DeFi protocols, such as futures, forwards, and options. Arcadia offers a composable solution for the accounting, pricing, and management of user assets. Our Margin Accounts will ensure that assets are always greater than any outstanding liabilities.
  • Are you interested in integrating your protocol with Arcadia’s Margin Accounts, or do you want to build your own protocol on top? Don’t hesitate to reach out!

--

--