Arcadiance
Welcome to Arcadiance, the cornerstone of Arcadia's Flywheel, built to sustain the vision of Permissionless DAOs. While DAO creation brings exciting opportunities, it also carries the significant risks of rug pulls or failure. Even on permissioned platforms, token holders can suffer substantial losses when DAOs underperform or collapse.
Arcadiance was created to safeguard the game theory of Arcadia, ensuring all participants are protected. When a DAO succeeds, stakeholders thrive. But if a DAO fails, stakeholders remain shielded from heavy losses.
Since anyone can easily create a DAO, Fund Managers (or DAO Creators) are required to collateralize assets like $SOL or $USDC in Arcadiance Vaults. These assets are deployed into Solana's DeFi ecosystem to generate yield from the aggregated principal in the Vaults.
If a DAO rug pulls or operates at a loss within a specified timeframe, the reserved principal funds will be redistributed proportionally to DAO token holders. Conversely, if a DAO operates successfully, its creators can reclaim their collateral. Meanwhile, the yield generated by Arcadiance Vaults flows directly into the Arcadia Treasury, fueling the ecosystem’s growth.
Key Arcadiance Parameters:
Insurance Duration: 300 days from the DAO’s inception. The minimum term for setting up a maturity period is 365 days.
Payout Mechanism: DAO token holders must stake their tokens in Arcadiance to reclaim the collateralized assets, distributed over a 100-day vesting period.
Funding Cap: 80% of the collateralized assets.
DAO Size Limit: Determined by the value of collateral. For instance, if Bob collateralizes $100K in $USDC, his DAO can raise up to $80K $USDC.
Arcadiance is more than a safeguard—it's a revolutionary layer of protection and growth, ensuring every participant in Arcadia’s ecosystem can innovate with confidence and stability.
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