Pegged Pair Vaults

Steadily earn real yield without impermanent loss.

Currently, all pegged pair vaults are not utilizing dual liquidity. When LPDfi supports dual liquidity for these pairs, Orange will integrate them.

Pegged Pair Strategy

1. Dynamic Range

The ranges are dynamically determined based on the assets’ volatility to ensure swap fees are earned even during volatile situations.

Dynamic range setting is generally applied for pegged pairs, however, the liquidity range is very narrow due to their stability. The position does not earn a fee when the price is out of range, such as when volatility is extraordinarily high.

2. Rebalance

The position is periodically updated to ensure that the asset exposure remains balanced between the two. To achieve this, a swap is performed using a flashloan (Balancer) to optimize the gas cost of rebalancing.