Arcadia Finance — clAMM Agent Guide

Arcadia is a platform for managing concentrated liquidity positions with automated rebalancing, compounding, yield optimization, and leverage. Positions live in Arcadia accounts, which can also borrow against their collateral. This skill covers everything needed to manage clAMM positions as an agent.

Key Constraints

• *All `write. tools return unsigned transactions** ({ to, data, value, chainId }`) — you must sign and broadcast them. See "Transaction Signing" below.
• Automation strategy config (tick range, rebalance thresholds) is not currently settable via MCP — this requires Arcadia platform access.
• Health factor = 1 - (used_margin / liquidation_value). Higher is safer. 1 = no debt, >0 = healthy, 0 = liquidation threshold, <0 = past liquidation. Keep above 0.5 for leveraged positions; act immediately below 0.2.
• Minimum margin — each lending pool enforces a fixed minimum margin denominated in the pool's numeraire (e.g. WETH for the WETH pool, USDC for the USDC pool), typically a few dollars in value. This gets added to the debt when computing used_margin (i.e. used_margin = open_debt + minimum_margin). It ensures liquidations remain profitable (covering gas costs) and prevents dust attacks. For small positions the fixed minimum margin dominates the used margin, pushing health factor lower than the leverage ratio alone would suggest (e.g. HF ~0.3 at 2× leverage). Increase position size for a healthier starting HF. write.account.add_liquidity also validates deposits against per-asset minimum amounts from strategy risk factors.
• `asset_id` is always an integer (NFT token ID for LP positions, 0 for ERC20 tokens).
• Wrapping ETH — ETH must be wrapped to WETH before depositing. Call WETH's deposit() function (payable) with the ETH amount. No MCP tool for this, use your wallet.

Transaction Signing

Write tools (write.*) return unsigned transaction calldata. This server does NOT sign or broadcast. After receiving a transaction object, you must:

1. Sign the transaction with the account owner's private key or wallet
2. Broadcast it to the appropriate chain (Base 8453, Unichain 130, or Optimism 10)
3. Wait for the transaction receipt to confirm success

How you sign depends on your setup:

• MPC wallet (Fireblocks, Dfns, Turnkey) — pass the unsigned tx to your provider's signing API
• Smart account (Safe, Biconomy) — wrap the tx as a UserOperation or Safe transaction
• Embedded wallet (Privy, Dynamic) — use the provider's sendTransaction method
• Direct private key (development only) — use the built-in dev.send tool (set PK in a .env file or MCP client config), or viem/ethers sendTransaction with a local signer

Example with viem:

const hash = await walletClient.sendTransaction(tx);
const receipt = await publicClient.waitForTransactionReceipt({ hash });

Batching Philosophy

Arcadia's flash-action tools can batch multiple DeFi operations into a single atomic transaction. Always prefer batched tools — they reduce transaction count, gas cost, and exposure to price movement between steps.

When to split: In high-volatility markets or for low-liquidity pools, batched transactions may revert because on-chain state changes between when the backend computes calldata and when the transaction executes. If a batched tool fails, fall back to individual tools with tighter slippage. Always try batched first, split only on failure.

Batched write tools (`write.account.add_liquidity`, `write.account.close`, `write.account.deleverage`, `write.account.swap`, `write.account.remove_liquidity`, `write.account.stake`) return time-sensitive calldata — sign and broadcast promptly; calldata may expire after 30–60 seconds depending on market conditions. If a transaction reverts due to price movement, rebuild and retry at least once before falling back to individual tools.

MCP Tools (39 + 1 dev)

Read Tools

Preferred Write Tools (atomic/multi-step — use these first)

These tools batch multiple operations into ONE atomic transaction. Always prefer these over individual tools.

Individual Write Tools (use when batched tools fail or for standalone operations)

Dev Tools (only available when PK env var is set)

Shared Addresses

Lending Pools

Use as pool_address in write.account.borrow / write.account.repay, as creditor in write.account.create / write.account.deleverage. Same CREATE2 addresses on Base and Optimism. Unichain has no lending pools.

Asset Manager Addresses

Addresses are auto-resolved by write.asset_manager.* intent tools based on dex_protocol, targeting the latest deployed version on the selected chain. Listed here for reference. All require V3/V4 accounts. Older asset-manager versions remain on-chain for users who registered before the latest version shipped; read.account.info detects active registrations across every deployed version and reports the dex_protocol with no version suffix.

Standalone AMs (not tied to a DEX protocol, same address on all supported chains):

Protocol-specific AMs (rebalancer, compounder, yield claimer). Slipstream V2 is Base-only. All other addresses apply to every chain where the protocol exists:

Slipstream V3 on Optimism uses different addresses (exception to the deterministic deployment pattern):

Slipstream V1 vs V2 vs V3: The pool determines the version, each pool is bound to a specific Slipstream version. read.account.info returns a dex_protocol field on LP positions (derived from the position manager address), so you can read the protocol directly from the account overview. Pass this value (slipstream, slipstream_v2, slipstream_v3, or their staked_* variants) as dex_protocol to write.asset_manager.* intent tools to auto-resolve the correct AM address.

Account Versions

Spot vs margin is determined by whether a creditor (lending pool) is set at account creation, not by version number.

• account_version: 3 — margin account (created with a creditor). Can borrow, leverage, and mint LP. Uses an onchain whitelist of allowed collateral tokens.
• account_version: 4 or 0 (latest) — spot account (no creditor, no borrowing). Can hold assets and mint LP with leverage: 0. Accepts any ERC20 (no onchain whitelist).
• account_version: 1 or 2 — legacy. Not supported by current MCP tools (write.asset_manager.* and write.account.set_asset_managers require V3/V4).
• For leveraged LP strategies, use account_version: 3 with a creditor.
• To check an existing account's version: call read.account.info — the response includes the account version.

Chain-Specific Addresses

Base (8453)

Protocols: Slipstream V1, Slipstream V2, Slipstream V3, Uniswap V3, Uniswap V4.

Optimism (10)

Protocols: Slipstream V1 (Velodrome), Slipstream V3, Uniswap V3, Uniswap V4. No Slipstream V2, no cbBTC pool.

Unichain (130)

Protocols: Slipstream V1, Uniswap V3, Uniswap V4. No Slipstream V2/V3. No lending pools.

Reference Files

• automation.md — How to enable each automation type
• selection.md — How to evaluate pools, choose range width, size leverage, combine automation
• strategies.md — Step-by-step strategy templates: delta neutral LP and protocol-owned liquidity