Overview

Arcana is a protocol built on re.al that captures the yield from a variety of delta-neutral trade strategies and distributes it in the form of a rebasing token that is soft-pegged to the dollar, arcUSD.

Historically, these types of delta-neutral trades have allowed experienced traders and institutional investors to gain the upside for the appreciation of assets like BTC and ETH, while hedging the inherent high risk. While these can be simple trades (explained in detail in the next sections), they have been more suited to an institutional trading infrastructure.

Arcana decentralizes access to delta-neutral trades allowing any user to acquire arcUSD in the secondary market to capture the underlying yield through a simple ERC-20 token. arcUSD can be deployed across multiple DeFi venues unlocking additional yield composability.

arcUSD Key Features:

• Rebasing yield accrues directly to the user's wallet

• No staking or lock-ups required to earn yield, sell anytime

• Permissionless and cross-chain

While arcUSD is soft-pegged to the dollar to facilitate user experience and unlock seamless DeFi composability, this is not a stablecoin.

Arcana can’t be compared to products such as USDT and USDC, since it introduces new and different risks, which are not proper of the stablecoin category. Redemption value of arcUSD will be based on the current protocol coverage ratio and insurance fund.