Arcanum protocol acts as a platform for indexed exchange-traded funds in a form of multipools enforced by unique balancing mechanisms approved by the governance. Multipools are the foundational concept of Arcanum, enabling access to a multi asset liquidity with just a single token without dilution or imbalance and augmenting capital efficiency. Arcanum enables generation of decentralised ETFs tracking the prices of crypto assets within multipools.

The ETF balance stabilization is enforced by the inbuilt algorithms determining the shares of assets in the equilibrium state of the pool in response to the changing market conditions, while dynamic pricing is supported by oracles and an aggregate of prices from leading volume exchanges.