What is Arcus? How to use it?

Arcus: An emerging decentralized trading platform connecting traditional finance and blockchain

With the deepening integration of the cryptocurrency market and the traditional financial system, emerging platforms that can support stocks, commodities, and indices for different asset classes to trade on the blockchain have emerged. Arcus is one of the high-profile projects in this transformation. As a decentralized exchange (DEX) developed in partnership with Robinhood and built on Robinhood Chain, Arcus aims to give users access to multiple asset classes through a single self-managed account.

On the Arcus platform, users can trade Stock Tokens, crypto assets, and perpetual contracts. Among them, tokenized stock trading supports round-the-clock (24 hours a day, 7 days a week), and the platform currently exempts handling fees for such transactions. In terms of perpetual contracts, users can open positions in stocks, cryptocurrencies, commodities and indices, with a maximum leverage multiple of 50 times.

The core feature of Arcus is that its transactions are not executed through centralized intermediaries, but rely on smart contracts running on the blockchain. This means users can retain control of assets in their wallets, allowing transactions to be conducted in a peer-to-peer infrastructure environment.

How Arcus works

Arcus is designed as a blockchain-based smart contract protocol with the core goal of allowing users to trade in tokenized stocks, crypto assets and perpetual contract products using a "self-managed" model.

Under the self-managed architecture, users 'assets are not directly kept by the centralized platform, and users themselves have control of their accounts and assets. In addition, because Arcus is built on top of Robinhood Chain, its infrastructure runs within a blockchain ecosystem connected to tokenized real-world assets.

From a user experience perspective, the platform is committed to combining the ease of use of centralized exchanges and traditional financial applications with the infrastructure of decentralized finance (DeFi).

Asset Classes Supported by Arcus

Arcus does not just focus on cryptocurrency trading, one of its core features is the integration of different asset classes into the same trading environment. The main asset classes supported by the platform include:

• Tokenized stocks
• indices
• Commodities
• Cryptocurrency
• Perpetual contracts

This structure allows users not only to access the cryptocurrency market, You can also access various assets in traditional financial markets through blockchain-based products.

What is a Stock Token?

Tokenized stocks are one of Arcus's main products. They are different from classic stocks that represent direct ownership in traditional stock markets. A tokenized stock is a tokenized security that allows users to be exposed to the economic performance of the underlying stock or exchange-traded fund. This economic access is achieved through contractual rights based on a cash redemption request from the issuer.

Therefore, users who purchase tokenized stocks do not necessarily have the same legal structure as traditional stocks. The issuer, redemption mechanism and related terms of the product are crucial. This means that tokenized stocks may carry different risks than traditional stock ownership, such as loss or theft of private keys, liquidity restrictions, access to redemption opportunities, differences between token prices and underlying assets, and the possibility of regulatory frameworks changing over time.

All-weather stock trading

Traditional stock markets have fixed trading hours, while blockchain-based markets can continue to operate. Arcus provides a 24/7 tokenized stock trading service that allows users to access supported tokenized assets during traditional market closures.

Currently, during the testing phase, the platform implements a zero-transaction rate policy for stocks, indices and crypto assets. Arcus offers tokenized stock options that include more than 80 U.S. and international stocks, covering large companies as well as some companies from mid-and small markets.

Index Trading

Arcus offers index products for users who want to be exposed to a broader market group rather than a single asset. Users can trade through index-oriented products such as SPY and QQQ, thereby gaining access to broader market or industry sector performance through a single position.

Index products provide an alternative for users who want to open positions against a specific market basket or group of technology-intensive companies, rather than holding individual stocks individually.

Commodity Trading

Commodities are another type of asset provided by platforms. The feature is designed to give users access to a variety of commodities that play an important role in the real-world economy, from precious metals to energy markets. Through this feature, Arcus extends the blockchain-based transaction experience from digital assets to different asset classes in traditional markets.

Cryptocurrency trading

Cryptocurrency is also one of the basic trading areas of the Arcus ecosystem. The platform provides access to major crypto assets such as Bitcoin (BTC), Ethereum (ETH) and Solana (SOL). In order to adapt to the 24/7 trading nature of the cryptocurrency market, the platform aims to allow users to trade without the limitations of traditional market time.

In addition to spot crypto assets, the platform also provides perpetual contract products, allowing users to simultaneously access spot similar products and leveraged derivatives in the same ecosystem.

What are Perpetual Futures?

Perpetual contracts are derivatives with no specific expiration date that allow users to open positions based on an increase or decrease in asset prices. Arcus offers products covering stocks, cryptocurrencies, commodities and indices in terms of perpetual contracts.

These products support leveraged trading, and the maximum leverage multiple provided by the platform can reach 50 times. Although leverage allows users to open larger positions with less margin, it can also cause losses to expand rapidly. Therefore, trading in perpetual contracts carries significant risks, especially when high leverage is used.

Arcus trading model

In order to meet the needs of different users, Arcus provides multiple trading models:

1. Order book interface: An interface similar to a professional trading platform, allowing users to conduct traditional trading operations.
2. Pro Mode: Provides a low-rate trading experience.
3. 1001x model: focuses on trading highly leveraged perpetual contracts.

These different structures are designed to both allow professional traders access to advanced trading tools and allow users who prefer a simple interface to easily use the platform.

How to recharge Arcus?

Users can fund Arcus accounts in a variety of ways, and the platform supports the use of Apple Pay, bank cards or cryptocurrency to recharge. The general steps are as follows:

1. Log in to the Arcus platform.
2. Use the relevant options to connect to your wallet or account.
3. Open the recharge section.
4. Select the desired payment method (Apple Pay, bank card, or cryptocurrency) and fund the account.

When transferring money using cryptocurrency, it is crucial to ensure that the correct network and address are used, otherwise assets may be lost.

How to trade on Arcus?

To trade on Arcus, you must first select the asset or transaction type supported by the platform. The general process is as follows:

1. Log in to the platform.
2. Select the target asset class.
3. Identify specific tokenized stocks, cryptoassets, indices or perpetual contract products.
4. Set the direction and quantity of transactions.
5. Select the appropriate order type.
6. Confirm and approve the transaction.

When trading perpetual contracts, factors such as leverage ratios and position sizes need to be carefully evaluated.

How to trade perpetual contracts?

Users first need to select the relevant perpetual contract product and then determine the direction of the position. Establish a long position if the price is believed to be rising, and establish a short position if the price is believed to be falling.

Leverage is optional during trading, and Arcus perpetual products support up to 50 times leverage. However, as leverage increases, so does liquidation risk. Especially in markets with volatile short-term prices, small price movements can have significant consequences in highly leveraged positions.

Arcus Mobile Use

Arcus is more than just a desktop trading platform. Users can associate desktop accounts with mobile devices to track positions and transactions while on the move. This allows users to check open positions, monitor markets and manage trading processes when necessary without having to bind to a desktop computer.

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