🚀Yield Multiplier Pipeline

By co-operatively working to maintain BRR's price premium, and holding $ARCADE - users can greatly increase their yield on vault assets they already hold

Arcade wraps existing DeFi yield bearing asset vaults to form Arcade Machine Vaults, which are made available to ARCA holders. These vaults have their real yield inserted into the yield pipeline, to return a multiplied yield to players.

Goals of the Yield Multiplier Pipeline

1. Enable Arcade Machine Vaults to consistently outperform the yield of their underlying, both in the immediate and long term.

2. Ensure all yield given to players is ultimately backed by sustainable external protocols

3. Minimise impermanent loss (IL) to all liquidity providers in the yield pipeline

4. Minimise financial risks to Arcade Machine Vault token holders, by limiting the risk of loss to the yield itself - not the players' deposits

5. A high level of composability, in order to enable any vault from any chain to hypothetically wrapped in the long term

TLDR

For Players :

1. A player takes e.g.

   1. A yield bearing asset they hold (like stETH)

   2. A non-yield bearing asset they hold (like ETH)

2. They deposit the token into the ARCA's account

3. They mint e.g. AMVstETH (Arcade Machine Vault stETH)

4. They get yield in $ARCADE

   1. Normally the underlying yields e.g. 4% APR

   2. Because of the pipeline, the user gets 8% APR (2x)

What the pipeline does :

1. Arcade has many machine vaults, e.g. AMVstETH (Arcade Machine Vault stETH)

2. At regular intervals, yield is swept from these vaults and used to mint BRR at backing

   1. e.g. a USD vault with $10M TVL yields 7.3% APR, and is swept once daily

   2. $10M * 7.3% / 365 days = $2000 of real yield per day

   3. BRR has a backing of $2 per token

   4. Our keepers mint 1000 BRR during the sweep

   5. This 1000 BRR is sold on the open market for ARCADE

      1. BRR is trading for $4 on DEXes

   6. $4000 of yield is distributed to players, as ARCADE, using $2000 of real yield

How (3,3) Works in Arcadefi

• Deposit your existing tokens into Arcadefi

• Earn ARCADE as yield

• HODL ARCADE, stake it to win prizes

Grow Your Earning Potential (4,2)

Use your ARCADE to acquire lootboxes containing :

• PWRUPs to increase yield

• oBRR you can use to arbitrage the premium directly

• Rare wearables

• New ARCAs

Leverage Yield (9,9)

Use the ARCADE credit facility to borrow BRR to buy more ARCADE with

Decoupling of Mechanisms

Arcadefi takes inspiration from game theory driven reserve asset schemes of the last cycle, and decouples their various elements to create something more versatile and sustainable for its players. In addition, we also take note of vote escrow models, and use our game-mechanics to replace role of long lock times as a token sink.

Price Bound Backing Reserves & Revenue (BRR) Token

BRR is an index token, backed by a range of yielding ArcadeMachineVault tokens. Its role can be compared to DAI's within Olympus Protocol. However, BRR's non-pegged nature has several beneficial to the yield pipeline.

We seek to keep BRR at manageable premiums (ie. within enforced lower bound and soft upper bound) in order to minimise IL for LPs and prevent price bubbles. Effectively, this serves as an anti-lock braking system for (3,3) - dampening price movement outside these bounds.

Reserve vs Risk Token

We present BRR as a store of value and retain its position as such thru various mechanisms. Simultaneously, all excess buy pressure on BRR is transferred into ARCADE, which is unbound in price and made with high risk users in mind, with features such as an inbuilt credit facility - allowing users to leverage it. This means we can serve both low risk and high risk investment strategies within Arcadefi.

Gentle Buy Pressure

Instead of using high yields to entice buyers, we inject BRR minted against real yield to buy ARCADE, this is a much more sustainable practice - especially given the reliability of yield rates in bear markets.

Competitive Burning of ARCADE

Lootboxes allow players to turn their ARCADE into value earning tools that increase their returns in the long term, including :

• Wearables that can sold

• PWRUPs which increase yield

• oBRR that can be used to arbitrage

This means that ARCADE has value as long as DeFi yields market wide are strong and BRR maintains a premium.

Mechanism Diversity

Instead of relying on a single set of mechanics (e.g. bonds & staking yield) to facilitate the ideal system conditions, we have the flexibility to introduce a large variety to stimulate BRR demand and curb excess supply for both BRR & ARCADE. For example :

• Coin Pusher Incentives

• ARCADE lootboxes

• oBRR lootboxes

• Credit facilities

Composability

Through the use of bridges and decentralised exchanges, we can support yield bearing assets from any chain. This will enable Arcadefi's yield pipeline to become a universal yield multiplier for all participants in the crypto ecosystem.