Arcade Finance

Arcade Finance gamifies yield farming and renders an almost-real 3D experience to it. It introduces game theory and prompts users to ideate on strategies to compete against each other to maximize the value of their assets.

An interactive arcade gaming experience mixed with innovative DeFi mechanics to create something new and engaging for on-chain users - reminiscent of late nineties and early 2000s games GenZ degens grew up with.

Users participate by depositing accepted yield-bearing assets (such as LSTs or LRTs) into Arcade Machines. These are smart contracts represented by physical Arcade Machines in the game. The real yield from these vaults is then used to mint BRR, and reward users with ARCADE in a non-inflationary manner.

Backing Reserves & Revenue (BRR) is the reserve currency that lies at the heart of our platform.

While BRR is indeed a play on the Arcade money printer go brr, it is primarily a reserve token inspired by the .

BRR tokens are backed by some of the highest-quality assets in DeFi (such as liquid staking tokens, liquid restaking tokens, GMX's GLP and more). These assets are sourced from our partners, and wrapped in Arcade Machine Vaults.

Anyone can redeem BRR at anytime for the tokens in the index, however, minting is permissioned. The protocol distributes yield in ARCADE, by minting BRR from real yield and using this BRR to acquire ARCADE off the open market.

The protocol also sells tokenized rights to mint BRR, which users buy using ARCADE, providing one of many token sinks used to fund incentives without inflation.

The gated nature of BRR minting ensures it trades above backing price, creating enticing arbitrage opportunities.

BRR can be minted by depositing the accepted tokens to the treasury, receiving BRR at its floor price. Players can also borrow BRR against their ARCADE tokens using the Credit Facility. In addition, Arcade Finance revenue is used to fund BRR liquidity incentives, with pairs against ETH, and all Arcade Machine Vaults, via The Coin Pusher - turning this into a flywheel.

We gamify every element of the protocol, with users needing to complete mini games to sign transactions, and replacing bonds with Loot Boxes - which use random chance to adjust payouts. The layers of game theory reward active participation - closing the gap between whales and ardent degens.

The Five Pillars of Arcade Finance

A Yielding Treasury: At its core, Arcade Finance operates a dynamic and yielding treasury - through its Arcade Machine Vault Reserves. Yield from these reserves is then dynamically rebalanced and allocated as newly minted BRR tokens - ensuring it is accrued from the highest quality assets.
Leveraging Account Abstraction: Arcade Finance builds on top of ERC-20, ERC-721, and EIP-6551 (Token Bound Accounts) to bring a unique experience to the table. The account is both a wallet and an NFT that offers a multiplier in the Lottery. It also allows for a level of automation, easy Telegram integration, additional security, and future gaming integrations.
Gamification: Arcaders acquire ARCADE by minting Loot Boxes using the Arcade Hall Machines. By holding ARCA NFTs, they can also get multipliers in either of the Arcade Machines or the Lottery. Each Arcade Hall machine has its own distinct role within the Arcade Hall. By introducing these dynamic and engaging mechanisms, Arcaders are encouraged to explore the platform and find the most optimal ways to interact with the available machines to maximize their BRR in specific situations. They might even find it optimal to spend their earned ARCA NFTs on Power Ups for their Loot Boxes - for a chance to boost their yield against other players. Through games of choice, bonding, and pushing coins, Arcaders are rewarded with Loot Boxes and discounts.
A high-quality Reserve Asset: BRR is a highly secure reserve asset, designed to float pseudo-stably above its floor price, subject to dynamic minting and redemption that happens in the Arcade Finance ecosystem. It is minted against Arcade Machine Vault tokens, using a currency board model.
Novel Technologies: A number of protocol elements, such as our credit facility, incorporate new approaches to building financial instruments on chain, with the aim of being composable with new design strategies such as intent-based architectures. We are also working to introduce a number of contract account innovations designed to improve UX significantly for the average user. We will also be making bespoke elements of Arcade Finance such as loot boxes and yield management systems available to other DAOs.

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Last updated 11 months ago

The Five Pillars of Arcade Finance

A Yielding Treasury: At its core, Arcade Finance operates a dynamic and yielding treasury - through its Arcade Machine Vault Reserves. Yield from these reserves is then dynamically rebalanced and allocated as newly minted BRR tokens - ensuring it is accrued from the highest quality assets.

Leveraging Account Abstraction: Arcade Finance builds on top of ERC-20, ERC-721, and EIP-6551 (Token Bound Accounts) to bring a unique experience to the table. The account is both a wallet and an NFT that offers a multiplier in the Lottery. It also allows for a level of automation, easy Telegram integration, additional security, and future gaming integrations.

Gamification: Arcaders acquire ARCADE by minting Loot Boxes using the Arcade Hall Machines. By holding ARCA NFTs, they can also get multipliers in either of the Arcade Machines or the Lottery. Each Arcade Hall machine has its own distinct role within the Arcade Hall. By introducing these dynamic and engaging mechanisms, Arcaders are encouraged to explore the platform and find the most optimal ways to interact with the available machines to maximize their BRR in specific situations. They might even find it optimal to spend their earned ARCA NFTs on Power Ups for their Loot Boxes - for a chance to boost their yield against other players. Through games of choice, bonding, and pushing coins, Arcaders are rewarded with Loot Boxes and discounts.

A high-quality Reserve Asset: BRR is a highly secure reserve asset, designed to float pseudo-stably above its floor price, subject to dynamic minting and redemption that happens in the Arcade Finance ecosystem. It is minted against Arcade Machine Vault tokens, using a currency board model.

Novel Technologies: A number of protocol elements, such as our credit facility, incorporate new approaches to building financial instruments on chain, with the aim of being composable with new design strategies such as intent-based architectures. We are also working to introduce a number of contract account innovations designed to improve UX significantly for the average user. We will also be making bespoke elements of Arcade Finance such as loot boxes and yield management systems available to other DAOs.

The following pages aim to give a detailed overview of how Arcade Finance works. For more bite-sized content, follow us on .