Fluid Liquidity

Overview

An adaptable approach for varied market conditions. Liquidity positions adjust based on the vault’s asset ratio, operating in three states (default, unbalanced, one‑sided). The aim is to preserve desired holdings while maintaining active fee capture and mitigating divergence loss.

Ideal Applications

This strategy also performs well in environments with low liquidity, markets where the vault holds the majority of funds, and is flexible in new chains and markets during maturity.

Technical Explanation

Positions adapt to the vault’s asset ratio: a default near‑price position, limit positions to rebalance holdings, and a wide sprawl when one‑sided. Parameterization is minimal from an investor perspective; the system prioritizes capital preservation and active fee capture