Arkadiko is a DeFi - primitive which means it is a building block for other types of decentralized applications. The following diagram shows the different types of functionality and tokens within the Arkadiko ecosystem:
A user is able to deposit and withdraw tokens to and from an Arkadiko Vault, giving the vault a certain Value. Based upon this Vault Value, the user is able to mint USDA. They create an equivalent amount of debt in USDA that needs to be repaid when the user wishes to unlock his collateral.
Using Arkadiko Vaults and Arkadiko Swap can yield potential rewards in the Arkadiko Governance token, DIKO. These incentives given for Liquidity Providers can be further used in the Arkadiko protocol to vote or create DAO proposals.
USDA is extra liquidity which can be used within the Stacks DeFi ecosystem. Some potential uses of USDA:
1) Swap USDA in USDA-denominated liquidity pools to another token.
2) Provide liquidity to asset pools on a Decentralized Exchange or Automated Market Maker. Earn trading fees from swaps that occur within the pool.
3) Deploy USDA into various liquidity mining farms. Tokens from other protocols often launch by attracting liquidity and distributing tokens pro rata the liquidity provided.
4) Deposit USDA to a lending protocol on Stacks. Lender receives interest payments by borrowers
5) Deposit USDA into an automatic liquidator for Arkadiko Vaults. Learn more in Liquidation Pool
In all five cases, there is the opportunity to profit by owning USDA and putting it to productive use within the DeFi ecosystem on Stacks.