Volatility-Hedged Yield Maximization Strategy

An example strategy that can be created using A51.


To maximize yield while hedging against extreme price volatility in a given token pair, say ETH/USDC.

ETH Price = $1,500

Market Mode

  • Bull Mode: When ETH price rises by more than 5%, rebase the position to capture more of the upside.

Rebasing Mechanism

  • Rebase Preference: 5%, liquidity needs to be in range.

Exit Strategy:

  • Reverse Liquidation: Automatically sell all of USDC and convert it to ETH if it reaches $1,800.

  • Smart Exit: Convert all of ETH back into USDC if ETH reaches $2,000

  • Exit Preference: Automatically withdraw liquidity if the price of ETH drops to $1,300.

Liquidity Distribution:

  • Exponential Symmetrical: Distribute the liquidity in an exponential symmetrical way.

Additional Features:

  • Farming Rewards: Lock NFT received from liquidity provision to receive additional farming rewards.

This strategy aims to balance the pursuit of high yields with risk mitigation, making it suitable for LPs who have a moderate risk tolerance and are looking for both capital appreciation and income.

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