Risk Management

Our protocol has detailed risk management strategy, which includes:

Managing Limits

The protocol is managing TVL for each dual (e.g. UNI/USDT) to prevent risky high volumes and prevent users' losses (and the protocol's losses too). Currently, our limit for each dual is about $50,000.

Volume and fee earnings

The protocol checks whether the selected CLMM has sufficient volume, or whether the expected premium for buying/selling options is enough. If not, the protocol will attempt to use different stablecoins to provide liquidity and minimize the risk of losses.

Diversification

If the sum is large, the protocol uses a few blockchains to keep the earnings on the same level. This helps to generate earnings in the most effective way from all pools, reducing the risk of losses.

Managing APRs

If all the above methods fail to prevent losses, the protocol has a system for managing APR on the required level. If losses occur, the APY will be automatically decreased to return the positive PnL