Points Season 4: Referrals

4 min readAug 7, 2024

Welcome to Arcadia Finance, your one-stop shop for one-click DeFi strategies and leveraged yield farming. Today we introduce Points Season 4, announcing our referral program and new points boosters.

Dear Arcadia fans,

Last Season we distributed a total of 2,103,836,231 points to our users, marking a period of sustained growth for the protocol.
We introduced new integrations such as auto-compounding Aerodrome positions , made Arcadia accessible from any chain by partnering with Superform and were featured by Tenderly and Lido.

As we enter our new Season, let’s take a look at how points will be distributed and prepare you to make optimal use of your referrals!

Overview

There are three ways to earn points: lending, borrowing and referrals.
Lending and borrowing earns you points based on the capital you deploy.
Referrals earn you points based on how many points those you referred earn. (new)
Featured Pools from our partners will earn you a boost on your points!

Lending — providing liquidity

On Arcadia, you earn lending points by depositing USDC or ETH into our lending pools.

When you deposit into the lending pools, you contribute to the protocol by providing liquidity for other users. This allows them to take out leveraged positions on their yield farming strategies.

For every dollar you deposit, you earn 1 point every hour.

Example: If you deposit $100 dollars for 10 hours, you will have earned
100 x 10 = 1000 points.

Borrowing — applying leverage

On Arcadia, you earn borrowing points by applying leverage to your DEX LP positions. Both our top-pick Strategies as well as our Advanced strategies are eligible.

When you apply leverage to a position, you borrow assets from the lending pools to increase your exposure. Be careful, as leverage opens you up to liquidation risk!

For every dollar you borrow, you earn 0.3 points per hour.

Example: If you borrow $100 dollars for 10 hours, you will have earned
100 x 0.3 x 10 = 300 points.

How does this work with leverage?

Suppose a starting position of $100 dollars.

If you apply 2x leverage, you will borrow an additional $100 dollars from the lending pool for a total position size of $200 dollars, earning you
100 x 0.3 = 30 points per hour.
If you apply 5x leverage, you will borrow an additional $400 dollars from the lending pool for a total position size of $500 dollars, earning you
400 x 0.3 = 120 points per hour.

Lending vs Borrowing — how to earn the most points

If you would like to maximise the points you earn on Arcadia, here is an overview of the points you can acquire with $100 dollars worth of assets.

Lend: 100 points per hour
Strategy with 2x leverage: 30 points per hour
Strategy with 5x leverage: 120 points per hour
Strategy with 10x leverage: 270 points per hour

You can use the following formula to calculate your points in a leveraged position:

Points = (total leverage — 1) * 0.3 * duration.hours * base.position

Example: For a $100 dollar position over 10 hours with 10x leverage you will earn 9 * 0.3 * 10hours * $100 = 2700 points.

Referrals — onboard your friends and earn big

With Season 4, we introduce referrals on Arcadia. Referrals are a great way to incentivize your peers to try out Arcadia and get rewarded for doing so!

You can create a referral link on the Arcadia Points page to start earning:

You earn 10% of the points your referred friends earn.
Your friends earn points with a 5% boost applied for using your referral link.

Even if you are already using Arcadia, you can still increase the points you earn by using a referral link!

Example: If your friends would have earned 1000 points without being referred, they will now earn 1050 points (5% boost). You will earn 100 points for having referred them (10% of 1000).

Featured Pools — boost your points together with our partners

With a new Season come new Featured Pools, providing you the opportunity to further increase the points you accumulate.

Featured Pools are pools that feature a token of one of our partners. For the duration of the Season, these pools will have a boost applied to all points earned through them.
Additionally, select Featured Pools will be eligible for extra rewards provided by our partners.

A Featured Pool will have a 5% boost applied for the duration of the Season.

If you would have earned 1000 points by depositing into a strategy with a Featured Pool, you will now earn 1050 points (5% boost).

Featured Pools are announced on our socials, be sure to keep an eye out!

Conclusion

Season 4 provides many opportunities to increase the points you earn on Arcadia. We wish you all the best of luck doing so!

The Arcadia Team

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