# Arcana Points Program To bootstrap liquidity for the Arcana protocol and **arcUSD**—and incentivize early users with a stake in future protocol governance—Arcana is launching with a points program that rewards ecosystem participants during the growth phase of the project. Points program earnings can be easily tracked in the Arcana UI. After TGE and airdrop claims, the **ARCANA** token will accrue 5% of protocol yield to stakers, giving it an immediate role in the ecosystem. ## Points Program Design There will be a fixed amount of points designated for distribution each day based on user activity and their TVL in the protocol. **arcUSD** holders accrue the daily base reward, a 1x multiplier on their holdings. In this manner they're earning both protocol yield and incremental value in the form of a future **ARCANA** governance tokens. Users will also have the option to deposit **arcUSD** into the **PTa** vault, forgoing native **arcUSD** yield in exchange for access to the 10x allocation in daily points rewards. ### Daily Point Distribution: 1x (\~9%) of all points are allocated to **arcUSD** holders 10x (\~91%) of all points are allocated to **PTa** holders {% hint style="warning" %} At any time, the protocol reserves the right to reallocate future points distributions. Additional rewards multipliers or activities may be added at any time. Nothing will impact past rewards, but future rewards may be affected by these shifts. {% endhint %} ### Establishing Rewards Equilibrium For each token deposited into **PTa**, the native yield on one **arcUSD** doubles. Increasing the yield on **arcUSD** supports protocol growth, token liquidity and various other ecosystem benefits through the [liquidity flywheel. ](https://docs.arcana.finance/liquidity-flywheel) Too few **PTa** stakers means low **arcUSD** yield and a less powerful flywheel. However, too many **PTa** stakers opt for points rewards over native yield, points incentives risk becoming overly diluted. Lastly a volatile movement of funds between these two pools results in inconsistent rewards and returns which is generally unfavorable to users. The program design we've established should naturally result in a reward equilibrium where both the **arcUSD** native protocol rewards and **PTa** points rewards users feel fairly rewarded for their support of the protocol. {% hint style="warning" %} **PTa** points accruals will begin 24-hours after new transfer to prevent program abuse. This includes new **PTa** received from the vault, tokens transferred between wallets or leverage transactions on Stack.\ \ If a transfer adds new **PTa** to a position or into a wallet balance, only the new amount will be delayed in points accruals. The existing totals will continue to earn points. {% endhint %} The chart below shows three scenarios where $5 million in protocol TVL, a consistent protocol yield of 30% and the 1x/10x allocation of capped daily points between the two tokens can yield very different rewards outcomes for a user with $10k to deploy.
It's hard to predict how the market will ultimately value **ARCANA** points vs **arcUSD** yield, but we're attempting to engineer the program in a manner that establishes consistent, reliable returns for all protocol users. ## Maximizing Returns Arcana points farmers are also eligible for the **RWA** Rewards Program, where Arcana TVL and Arcana assets used within the re.al ecosystem may entitle Arcana users to multipliers on their **RWA** rewards earnings. Arcana users simply need to sign-up for this program to begin earning **RWA** from their **arcUSD** and **PTa.** Through our partnership with [Stack](https://www.stackmore.xyz), both **arcUSD** and **PTa** are approved collaterals in the borrow and leverage protocol. For **arcUSD** can be borrowed against like any other collateral, however, the **arcUSD** native yield may, in some cases, outweigh borrowing fees to create a free, self-repaying loan. When leveraged, **arcUSD** yields can be looped to return multiples on the native yield to the user. The same is true for **PTa**, which we can deposited as collateral and borrowed against, creating a low risk opportunity to farm Arcana with lower capital commitments. **PTa** can also be leveraged on Stack, looping up the native points multiplier. Dependent on the *effective points multiplier,* triple-digit points accrual is possible with Stack. Stack vaults may also bring additional multiplier benefits to users through the aforementioned **RWA** Rewards Program.