Liquid Staking

The LST Strategy is still in its earlier live phases where we are fine tuning and exploring what works best in live markets.

Investor‑friendly overview: Designed for asset pairs with gradual expected appreciation between the assets (e.g., LST with native). The strategy aims to accumulate the appreciating asset over time while staying active near price to capture usage fees.

Ideal Applications

Any asset pairing where there is gradual expected rate of appreciation between the assets can be suitable for this strategy.

Overview of Mechanics

• Maintains active liquidity near current price to capture fees

• Gradually tilts holdings toward the appreciating asset when signal and inventory allow

• Uses wider placements when one‑sided to protect scarce inventory while remaining active

Technical Explanation

Positions are centered near price with limited, rules‑based shifts in range and weight to favor the appreciating asset when inventories are imbalanced

Decision Diagram

graph TD
    A[Start] --> B{Is peg close to current tick?}
    B -->|Yes| C{Is asset ratio acceptable?}
    B -->|No| D{Is peg higher than current tick?}
    
    C -->|Yes| E[Create single position around current tick]
    C -->|No| F{Is token0 appreciating?}
    
    F -->|Yes| G{Too much token1?}
    F -->|No| H{Too much token1?}
    
    G -->|Yes| I[Create positions left of current tick]
    G -->|No| J[Create positions right of current tick]
    
    H -->|Yes| K[Create positions left of current tick]
    H -->|No| L[Create positions right of current tick]
    
    D -->|Yes| M{Is asset ratio acceptable?}
    D -->|No| N{Is asset ratio acceptable?}
    
    M -->|Yes| O[Create positions between current and peg]
    M -->|No| P{Is token0 appreciating?}
    
    P -->|Yes| Q{Too much token1?}
    P -->|No| R{Too much token1?}
    
    Q -->|Yes| S[Create positions left to peg]
    Q -->|No| T[Create positions right past peg]
    
    R -->|Yes| U[Create positions left to peg]
    R -->|No| V[Create positions right to peg]
    
    N -->|Yes| W{Is token0 appreciating?}
    N -->|No| X{Is token0 appreciating?}
    
    W -->|Yes| Y[Positions from peg to above current]
    W -->|No| Z[Positions from below peg to above current]
    
    X -->|Yes| AA{Too much token1?}
    X -->|No| AB{Too much token1?}
    
    AA -->|Yes| AC[Positions from peg to current]
    AA -->|No| AD[Positions from peg to above current]
    
    AB -->|Yes| AE[Positions from below peg to current]
    AB -->|No| AF[Positions from peg to above current]
    
    E --> AG[Return ULM Result]
    I --> AG
    J --> AG
    K --> AG
    L --> AG
    O --> AG
    S --> AG
    T --> AG
    U --> AG
    V --> AG
    Y --> AG
    Z --> AG
    AC --> AG
    AD --> AG
    AE --> AG
    AF --> AG
    
    AG --> AH[End]