The Strykes Vault Overview

The Vault Overview

The LPDfi Vault on Stryke (Formerly Dopex) will actively rebalance the liquidity position automatically with the following features:

• Single Asset Deposit

• Anytime Redemption

• Auto Rebalancing

• 0.1 % deposit fee

Single Asset Deposit

Users don’t need to prepare both assets to provide liquidity. Orange supports single-asset deposits. Deposited assets are once pooled within the vault, and will be collectively supplied with liquidity from other users to Stryke pools through batch transactions in the next cycle.

Anytime Redemption

Users can redeem their liquidity anytime even if the position is utilized. Positions that cannot be burned will be returned to users in the form of the Stryke LP token, which should be managed by users on Stryke UI after redemption.

Auto Rebalancing

The vault automatically rebalances the position according to the market condition to keep delivering returns to users.

Users get benefits from the vault with its auto liquidity management to receive higher premiums/fees by keeping the liquidity close to the strike price.

0.1 % deposit fee

Deposit fees of 0.1% are charged as a one-time fee at the time of deposit. These fees cover the gas costs associated with frequent rebalancing across multiple ticks.

Strategy Details

The below strategies are executed automatically by smart contracts + Gelato, while there is no off-chain component on Orange Finance's end.

• Mint Liquidity

• Monitoring the utilization status for auto-withdrawal/redeposit

Mint Liquidity

The deposited/burnt liquidity is once pooled, and it will be provided to CLAMM pools if pooled assets surpass a certain amount of threshold (hourly checked by Gelato).

Monitoring the utilization status for auto-withdrawal/redeposit

Currently, LPers on Stryke are rarely able to withdraw their liquidity as their liquidity is often utilized. Orange addresses this issue by monitoring the utilization status frequently, enabling the vault to shift liquidity into the valid range as soon as possible.

Burning positions out of range once they are available to withdraw over a certain amount of threshold.

Besides auto-withdrawal, this feature redeposits your liquidity back automatically into optimal range to earn rewards again. In order to achieve an even distribution of liquidity for each tick within the +-10% range, we allocate it proportionally.

We obtain tick information of +-10% from the current price and check Utilized Liquidity and Free Liquidity. Based on Free Liquidity and the pooled assets in the vault, we calculate the desired liquidity amount for each tick and adjust the liquidity for each tick by minting or burning accordingly.

Backtest

The estimated vault performance based on the backtest, covering the period from 10 Dec 2023 to 12 Jan 2024, are as follows.

• Stryke WETH-USDC.e STIP Vault

  - Total APR (backtest): 133.8% (LP APR 7.56% + Reward APR 126.24%)

LP APR includes fee + the value appreciation/depreciation of the assets.

FAQ

• Why not mint liquidity in a single tick? Our strategy involves diversifying by expanding the range, which helps minimize the risk of price fluctuations relative to the value of Liquidity positions. Moreover, in the current Stryke environment, it's quite typical to see nearly 100% utilization. We also aim to enhance the probability of successful withdrawals by reducing the amount held as tick liquidity, thereby focusing on maintaining concentrated liquidity within the specified range.

• Is Strategy Upgradable? Yes, Strategy parameters are upgradable. For example, we widened the liquidity range after the STIP reward ended.