⚡Stryke Vaults
Last updated
Last updated
Stryke is an options platform that leverages liquidity positions on AMMs. Liquidity deposited to Stryke is managed within AMM pools and locked in Stryke contracts for traders’ use. The modular CLAMM architecture enhances capital efficiency by enabling the integration of additional DeFi products, such as Margin Zero.
With Stryke, liquidity other than the current price can be leveraged to generate revenue. This will improve an LP's Fee APR and most LPs will benefit.
The following picture shows a comparison of fee revenue between Stryke and Uniswap, under the same condition that the liquidity is deployed +-10% from the current price. You can see that the fee income on CLAMM (Stryke) is constantly larger than the one on Uniswap.
LPDfi liquidity is a simple capital efficiency improvement, and the risk-return difference from utilizing it is also simple.
Higher Fee APR than AMM
Same PnL for LP over the change in asset price as AMM.
Liquidity is locked when utilized, and the liquidity provider cannot withdraw until the option matures or is exercised.
The vault has two strategies depending on the asset pair.
The strategy provides liquidity within ±10% of the current price and removes liquidity beyond ±20% of the current price, creating a substantial buffer for price fluctuations after minting liquidity. This approach allows the liquidity to be utilized for both swaps and options over the long term.
(The range settings may vary by pair due to their volatility.)
The position is updated periodically, ensuring that the liquidity level is balanced for every tick. To achieve this, a swap is performed using the swap aggregator (Kyberswap) and flashloan (Balancer), optimizing and minimizing losses from price impact on AMMs.
This strategy involves a swap transaction, so it is only applicable to pairs with ample liquidity among DEXs. Below is an example of a vault with this strategy.
| Pair | AMM behind Stryke | mint | burn |
|---|---|---|---|
WETH - USDC | UniswapV3, PancakeV3 | 10% | 20% |
ARB - USDC | UniswapV3, PancakeV3 | 10% | 20% |
WBTC - USDC | UniswapV3, PancakeV3 | 10% | 20% |
The strategy provides liquidity within ±10% of the current price and removes liquidity beyond ±20% of the current price, creating a substantial buffer for price fluctuations after minting liquidity. This approach allows the liquidity to be utilized for both swaps and options over the long term.
(The range settings may vary by pair due to their volatility.)
The position is updated periodically, ensuring that the liquidity level is balanced for each side individually. This strategy does not perform swaps, so the asset ratio changes with price fluctuations.
This strategy applies to pairs with scarce liquidity among DEXs. Below is an example of a vault with this strategy.
| Pair | AMM behind Stryke | mint | burn |
|---|---|---|---|
Boop - WETH | UniswapV3 | 40% | 45% |
