🪝The Claw Machine

Brief Overview

The Claw Machine is likely to be the first machine Arcaders play with upon entering the Arcade. Deposit tokens, interact with the machine to produce random inputs, and get goodies!

Claw Machines offer Loot Boxes to players, which open to return variable amounts of Arcade Finance tokens. The outcomes of these Loot Boxes depend on Quantum Random Numbers combined with users' input, in conjunction with their playing styles. Our initial design places an emphasis on rewarding ARCADE holder loyalty (HODL) as a play style.

Arcade Finance has four different types of Claw Machines, each of which give access to various assets. These machines will be rolled and updated out continuously starting from the middle of our beta-release.

ARCA NFT Claw Machine

This is where you start as a player; since you need an ARCA NFT to play the game, this is the easiest way to get one. The machine will instruct users to deposit a set amount of ARCADE to get an ARCA NFT in return. If the user is lucky, the only get charged the minimum price, with the excess transferred into their newly minted ARCA.

The deposit required is determined by a bonding curve that linearly decays back to it's minimum price over a fixed period of time. Each time someone obtains an ARCA Loot Box - the Claw Machine multiplies the deposit required for the next player by a set amount.

This is the only Machine in the entire protocol that can be accessed without an ARCA. However, for ARCAs wishing to mint new frens, the average time they have held their ARCADE will positively affect their odds of getting lucky - rewarding ARCAs for retaining their yield in ARCADE.

ARCADE Claw Machine

The ARCADE Claw Machine accepts BRR or either of its index components (Arcade Machine Vault tokens).

Users can deposit any value of tokens below a protocol set cap, receiving a Loot Box returning either one of two prices of the ARCADE token to the player - a discount rate or the market price.

Users open their Loot Box to reveal an ARCADE vesting position NFT, which can be shaken to acquire the newly unvested tokens it holds.

The discount pricing for this Claw Machine is derived from the Sequential Dutch Auction model popularized by Olympus Protocol.

The protocol controls the probability function and its inputs, as well as bond-related variables - to enable higher maximum discounts for lucky players, whilst maintaining responsible protocol policy.

The average time the inputted asset has been held by the ARCA positively correlates probability of a lucky result - a feature designed to monetize platform loyalty.

PWRUP Claw Machine

PWRUPs are essential to an ARCA's mission to maintain in-game dominance. PWRUPs buff skill levels and boost yields, and can be re-assigned to different vaults as a player's strategy changes.

The PWRUP Claw Machine accepts ARCADE tokens, promising Arcaders either a higher or lower amount of PWRUPs in return. Like with other Claw Machines, the longer an ARCAs average time held of its ARCADE balance, the higher it's chances of a lower price.

Arcade Finance targets PWRUP lootbox sales in line with a protocol set issuance schedule for PWRUPs. Thus, we are adapting the Gradual Dutch Auction model to set the prices for PWRUPs.

oBRR Rights Claw Machine

BRR Minting Rights (oBRR) are sold for ARCADE, giving utility to ARCADE as a realizer of arbitrage opportunities. More loyal ARCAs will hold advantaged odds. Due to the essential nature of BRR minting rights pricing for maintaining the yield flywheel of ARCADE, the issuance model of this claw machine is to be determined - subject to modelling.

Revenue Management

ARCADE earned by the protocol from the issuance of Loot Boxes is split between the DAO Fund and the Rewards Pool - funding further development and yield incentives to sustain the flywheel.

As well as earning ARCADE as payment for loot boxes, an additional ARCADE token is minted as protocol revenue for each newly minted ARCADE token given to users via The ARCADE Claw Machine.

BRR/BRR index component revenue is directly entirely into the backing of ARCADE.