DeFi Strategies
Maximize your returns and minimize risks with Algoo Strategies' automated DeFi trading strategies, designed to navigate the complexities of decentralized markets.
SOFT LONG” on ETH
DeFi strategy that generates yield (target 45% ROI) through the ETH-BAL liquidity pool and price appreciation of ETH (a +10% price increase in ETH results in +7.9% strategy growth) as borrowed BAL is converted to ETH, which is why this strategy is referred to as a “soft long.”
Full Description
Similar to YAPs, an investment in this strategy will be composed of “shares”. Half of the BAL pool is converted to ETH and then provided as supply tokens to Aura finance (a DeFi protocol that leverages liquidity pools). These supply tokens are used as collateral for creating a 2x leveraged position on a basket of ETH-BAL liquidity pools. The price dynamics of ETH are reflected in the strategy: on average, a 10% increase in the price of ETH results in a 7.9% growth of a strategy's price due to the conversion of BAL to ETH, making its price less volatile while capturing 45% ROI from fees and rewards. This strategy is an excellent way to diversify a portfolio during choppy, bearish markets while maintaining exposure for the start of a potential rally in the crypto markets.
Estimated returns and sources of yield
[Fees from ETH-USDC liquidity pool (~13% ROI) + trading fees from Uniswap (~10% ROI)] * 2 (Aura leverage) - borrow APR for leverage (0.8%) = approximately 45% ROI. Underlying coins and protocols
Coins and tokens: ETH, BAL
Protocols: Aura Finance as LP leverage, Iron Bank as the lending service under the hood of Alpha Homora.
Strategy pros
Efficiency. High yields combined with a long position on ETH lead to high efficiency during flat and bullish markets.
Liquid. Enter and exit the strategy at any time (with low fees).
Transparency. Track strategy performance via on-chain analytics and understand where yields are deriving (link).
Strategy cons
Limited Availability. Investors always have the ability to exit their position in this strategy, however, the availability of this position/strategy is calculated based on the liquidity within the strategy. In order to increase liquidity (and open up availability to additional investments), Algoo strategies must add more balances to the strategy, which we plan to do regularly. Please reach out to support if you’re looking to gain exposure into this strategy.
DeFi Protocol Risk. Algoo strategies builds strategies on top of fully audited protocols that have proven their sustainability, however, protocol vulnerabilities still exist. While Algoo Strategies monitors all positions 24/7, systematic DeFi risk is shared with investors.
Market Downtrend. A decline in the price of ETH will contribute toward price depreciation in the strategy.
Investment tips on how to blend this strategy into your portfolio
Risks and ways to hedge against presented risks
Liquidation possibilities (Low Risk). The position may be liquidated if ETH’s price decreases by 57% from position entrance due to leverage for liquidity pools with USDC as collateral. The position entry is updated weekly based on strategy demand, therefore, liquidation risk is low. Position health may be tracked on-chain via this Link.
Liquidity pools' impermanent loss (Medium Risk). The strategy is based on market-making of ETH-USDS liquidity pool, which are subject to impermanent loss. In this strategy, impermanent loss halved given the presence of USDC collateral. However, if the value of the ETH position were to drop two times in price in a short time span without retracement, simply holding ETH would give you 20% more in USD value. This is the “other side” of 40% ROI that the strategy targets. You can hedge this strategy by going long on ETH in addition to investing in this strategy. This, however, may give investors an overexposure to ETH.
Systematic DeFi risks (Medium Risk). Algoo Strategies uses real-time alerts to track all of the main metrics of the position's health, such as protocol liquidity, liquidation prices, and lending utilization rates. If one of our alerts is triggered, it may signal potential hacks, protocol vulnerabilities (liquidity issues), or bad health of the position. Algoo strategies has the ability to exit any of the strategies into stablecoins at any time should any of those events occur. Midas’ infrastructure and expertise give our investment team the ability to proactively protect investors from these risks.
Fees
Performance fee: 15% of weekly profit (only if the strategy has generated profit); fees are deducted directly from the strategy shares each week. The user retains the same number of SLETH tokens, but the price of each token is less by the success reward.
If the user exits the investment strategy before the settlement day, then we calculate the difference between the current price and the price of the last settlement period and take 15% of the profit. If there is no profit, then the user does not pay performance fee.
Performance fee = [Current price - last price] * 0.15Strategy address: https://debank.com/profile/0x8a7ab4337eac26a6a454a2356696686eed680efb
Maximum capacity: $18,000,000
SOFT SHORT” on ETH
DeFi strategy which generates yield (target 25% ROI) through ETH-USDC liquidity pool and price depreciation of ETH (a -10% decline in the price of ETH price leads to +4% strategy growth) due to ETH being borrowed while half of the position is converted to USDC.
Full description
Similar to YAPs, an investment into this strategy will be composed of “shares”. The strategy is denominated in USDC. USDC is deposited on AAVE to borrow ETH, and half of this ETH is sold for stables. The ETH and stables are then provided as supply tokens to Alpha Homora. The supply tokens are used as collateral for creating a 1x leveraged position on the basket of ETH-USDC liquidity pool. The position turns into a “short” based on the difference between the borrowing of ETH and having a ETH-USDC liquidity pool. Therefore, investors are short ETH while simultaneously profiting from LP rewards on Alpha Homora. The price dynamics of ETH are reflected in the strategy; on average, a 10% decline in the price of ETH leads to a 4% increase in the strategy's price, making its price less volatile (versus strictly holding ETH) while also capturing up to 25% ROI through fees and rewards. This strategy is a great way to hedge your crypto and altcoin portfolio from a potential drawdown in the market, while profiting from yields on Alpha Homora.
Estimated returns and source of yield
[Fees from ETH-USDC liquidity pool (±13% ROI) + trading fees from Uniswap (±10% ROI)] * 1 (Alpha Homora leverage) = 25% ROIUnderlying coins and protocols
Coins and tokens: ETH, USDC
Protocols: Alpha Homora as LP leverage, Iron Bank as the lending service under the hood of Alpha Homora, AAVE as the lending protocol
Strategy pros
Efficiency. Medium yields combined with short on ETH leads to high efficiency during flat and bearish markets. Liquid. Enter and exit the strategy at any time (with low fees).
Liquid. Enter and exit the strategy at any time (with low fees).
Transparency. Track strategy performance via on-chain analytics and understand where yields are deriving (link below).
Strategy cons
Market Uptrend. An increase in ETH’s price will result in a decline in the strategy's price.
DeFi Protocol Risk. Algoo strategies builds strategies on top of fully audited protocols that have proven their sustainability, however, protocol vulnerabilities still exist. While Algoo Strategies monitors all positions 24/7, systematic DeFi risk is shared with investors.
Limited Availability. Investors always have the ability to exit their position in this strategy, however, availability of this position/strategy is calculated based on the liquidity within the strategy. In order to increase liquidity (and open up availability to additional investments), Algoo strategies must add more balances to the strategy, which we plan to do regularly. Please reach out to support if you’re looking to gain exposure into this strategy.
Investment tips on how to blend this strategy into your portfolio
Risks and ways to hedge against presented risks
Price appreciation of ETH (High Risk). Sharp increases to the price of ETH will lead to a decline in the strategy’s performance (and price). Combining this strategy with a long position on ETH may partially offset strategy losses.
Liquidity pools' impermanent loss (Medium Risk). The strategy is based on market-making of ETH-USD liquidity pools, which are subject to impermanent loss. In this case, impermanent loss is generating money if ETH goes down and decreases if ETH goes up due to borrowing of ETH.
Systematic DeFi risks (Medium Risk). Algoo strategies uses real-time alerts to track all of the main metrics of the position's health, such as protocol liquidity, liquidation prices, and lending utilization rates. If one of our alerts is triggered, it may signal potential hacks, protocol vulnerabilities (liquidity issues), or bad health of the position. Algoo strategies has the ability to exit any of the strategies into stablecoins at any time should any of those events occur. Algoo strategies’ infrastructure and expertise gives our investment team the ability to proactively protect investors from these risks.
Fees
Performance fee: 20% of weekly profit (only if the strategy has generated profit); fees are deducted directly from the strategy shares each week. The user retains the same amount of returns generated but their price is less by the success reward.
If the user exits the investment strategy before the settlement day, then we calculate the difference between the current price and the price of the last settlement period and take 20% of the profit. If there is no profit, then the user does not pay performance fee.
Performance fee = [Current price - last price] * 0.2 Strategy address: https://debank.com/profile/0x53eaf3d7eb9272554d208e8680aabff275c51376
DeFi TOKEN FARMING
A basket of incentivised liquidity pools representing the most profitable cash-flow models in protocols with DeFi tokens on Convex Finance, which may generate up to 35% ROI while investors also benefit from price appreciation of the underlying tokens.
Full description
This strategy taps into top-tier liquidity pools in all of DeFi with the most valuable tokens, based on Algoo Strategies’ investment research. Each token in this strategy aims to address the pain points of DeFi and includes tokenomics revolving around the protocol's cash flow. The protocols included in the strategy solve the cornerstone problems of DeFi: liquidity and stablecoins. Including this strategy in your portfolio is similar to maintaining a long position on the entire DeFi ecosystem. Each liquidity pool includes incentivised rewards from Convex, which represent the primary source of the strategy’s yield. Liquidity pools are balanced based on available liquidity and market cap.
Liquidity pools and our rationale for selecting each one
CRV + cvxCRV. Curve is one of the largest automated market maker (“AMM”) protocols with a sophisticated mechanic of locking CRV to receive extra fees from their most used pools. CRV is used as a governance token to allocate CRV emissions for other project pools, required for protocol health. cvxCRV is tokenized, locked CRV from Convex Finance which is used by Convex to offer liquidity to dozens of DeFi protocols. The CRV + cvxCRV liquidity pool is incentivised by Curve and Convex to create liquidity between CRV native token and tokenized, locked CRV with an approximate APR of 25%. This pool is absent of impermanent loss risk and is long on CRV token, which boasts an exciting roadmap of a native stablecoin release in addition to cash flow tokenomics.
CRV + ETH. This pool provides liquidity for ETH and CRV tokens and is incentivised by Curve and Convex, reaching an APR up to 30%. This pool grows in price with the appreciation of ETH and CRV prices.
CVX + ETH. The pool provides liquidity for ETH and CVX tokens. CVX is a governance token of Convex Finance which is used to manage liquidity of Curve pools. CVX is a valuable token for protocols and stablecoins which seeks to bootstrap liquidity on Curve. Some of the major driving forces of CVX are bribes from other protocols. This pool is incentivised by Curve and Convex, reaching an APR up to 40%. This pool grows in price with an appreciation of ETH and CVX prices.
FXS + cvxFXS. This pool provides liquidity for FXS tokens and tokenized, locked FXS on Convex Finance. FXS, the world’s first fractional-algorithmic stablecoin, is the governance token of FRAX protocol; FRAX is an overcollateralized DeFi stablecoin with a flawless performance in terms of peg and and is entrenched with dozens of DeFi protocols. Owning FXS means owning part of the DeFi ecosystem they are building. FRAX DAO holds a major stack of locked CVX and CRV, arranges buybacks, and has fee generation mechanisms that capture the power from their ecosystem into the strength of their governance token. The pool is incentivised by CRV and CVX, with an APR up to 30%. This pool is not subject to impermanent loss.
Silo + FRAX. This pool provides liquidity for Silo token and FRAX stablecoin. Silo is a governance token for its upcoming isolated lending protocol, which aims to create a new level of security for lending markets, positioning it as the “Uniswap for lending.” The market cap of Silo is very low ($7M as of this publishing), and Algoo Strategies included this pool to share the potential major upside of their innovative approach to lending. The pool is incentivised by CRV and CVX, yielding an APR up to 60%. Algoo Strategies’ investment team will rebalance these pools based on several dynamic metrics, including available liquidity, price impact, and rewards. Algoo Strategies constantly evaluates opportunities in DeFi and plans to add more pools to this strategy based on community demand.
Estimated returns and source of yield
The target ROI for this strategy is 40%, but it may vary based on liquidity in the pools and incentivisation of the protocols.
Source of yield: fees, CRV and CVX governance tokens. Rewards are reinvested into the strategy and reflected in the price increase.
Underlying coins and protocols
Coins: CRV, CVX, ETH, FXS, Silo
Protocols: Convex Finance, Curve
Strategy pros
One Strategy. A single strategy from which to receive an attractive ROI from the most valuable DeFi projects in the current ecosystem.
Rebalancing. Algoo Strategies rebalances this strategy based on continuous monitoring, adapting it based on various market conditions.
Exposure to the upside following price increases of the DeFi tokens.
Strategy cons
Highly correlated assets. Macro crypto performance will strongly influence the performance of the strategy.
DeFi Protocol Risk. Algoo Strategies builds strategies on top of fully audited protocols that have proven their sustainability, however, protocol vulnerabilities still exist. While Algoo Strategies monitors all positions 24/7, systematic DeFi risk is shared with investors.
Limited Availability. Investors always have the ability to exit their position in this strategy, however, the availability of this position/strategy is calculated based on the liquidity within the strategy. In order to increase liquidity (and open up availability for additional investments), Algoo Strategies must add more balances to the strategy, which we plan to do regularly. Please reach out to support if you’re looking to gain exposure into this strategy.
Investment tips on how to blend this strategy into your portfolio
Risks and ways to hedge against presented risks
Assets are highly correlated to the macro movement of crypto (High Risk). This strategy is a full “long” on crypto and DeFi. Algoo Strategies asserts that this is a great long-term bet, but it can be highly volatile. You can hedge this risk with the “Soft Short” strategy or net shorts on crypto.
Impermanent loss (Medium Risk). The CRV-ETH, CVX-ETH and Silo-FRAX pools are subject to impermanent loss risk, which means that if one of the tokens performs disproportionately compared to the other, an investor would’ve been better off (profitability-wise) by simply holding those tokens. The formula for impermanent loss is a square root between the price change of two assets, which means that for every 100% of price change between two assets, the LP will underperform by 10%. CRV and CVX are highly correlated with ETH, therefore, Algoo Strategies’ investment team does not expect a major impact of impermanent loss.
Systematic DeFi risks (Medium Risk). All pools hosted on Convex Finance have passed an audit ordered by Coinbase and have never been subject to a hack. Algoo Strategies considers Convex Finance’s security as one of the best in the market. Nevertheless, Algoo Strategies uses real-time alerts to track all of the main metrics of the position's health, such as protocol liquidity, liquidation prices, and lending utilization rates. If one of our alerts is triggered, it may signal potential hacks, protocol vulnerabilities (liquidity issues), or the bad health of the position. Algoo Strategies has the ability to exit any of the strategies into stablecoins at any time should any of those events occur. Algoo Strategies’ infrastructure and expertise gives our investment team the ability to proactively protect investors from these risks.
Fees
Performance fee: 20% of weekly profit (only if the strategy has generated profit); fees are deducted directly from the strategy shares each week. The user retains the same number of DFTF tokens, but their price is less by the success reward.
If the user exits the investment strategy before the settlement day, then we calculate the difference between the current price and the price of the last settlement period and take 20% of the profit. If there is no profit, then the user does not pay performance fee.
Performance fee = [Current price - last price] * 0.2 Strategy address: https://debank.com/profile/0xae5f7b8962d2a186eab07085c74bbe6142467f27
Maximum capacity: $20,000,000
Disclaimer: While Algoo Strategies assumes no responsibility for malicious events impacting protocols or inefficiency of the strategy itself, it is our goal to make investing in these strategies as safe, effective and easy to use as possible. However, investment responsibility ultimately falls to the individual, and it is advised that investors do their own research before engaging in these strategies.
“GLP” - Index Liquidity Provision on GMX
DeFi strategy that generates 20–30% APR (in ETH) by providing blue-chip liquidity for leveraged traders on GMX, a decentralized perpetual exchange. Users supply liquidity into an index called GLP and earn fees generated from traders’ liquidations, or swaps, as well as gain from trader losses.
Full description
GLP is an investment product very similar to our YAPs that will be launching. Ninety-eight percent (98%) of the GLP index is composed of BTC, ETH, and stablecoins (FRAX, USDC, DAI, USDT). Historically, stablecoins have accounted for around 40-45% of the index while BTC and ETH have rounded out the remaining 50-55% of the index (in roughly equal proportions). Therefore, by buying GLP shares for stables, users will effectively enter a soft long position on ETH (~0.25x) and BTC (~0.25x). On top of this, investors will be eligible for ETH-denominated yield derived from activities performed by traders on GMX (more on these in the next section).
This strategy is an excellent, reasonably low-risk way to receive exposure to ETH and BTC along with a significant and sustainable ETH yield (~30%). GLP will be a particularly high performer during choppy markets when traders are most likely to lose money. Moreover, during periods of high volatility, the GLP TVL could grow due to traders’ negative PnL which results in an unbound upside potential.
Estimated returns and sources of yield
GLP’s source of yield is 100% sustainable. Rewards come from two sources:
Fees paid by traders (20% of the yield comes from this source) for: swapping assets using GLP liquidity, opening and closing their leveraged positions on GMX, and liquidations on GMX.
Traders’ losses: When traders lose money by misjudging the market, their net losses are GLP’s net profits. GLP is effectively the counterparty for traders; this yield source accounts for around 85% of the GLP yield.
Target ROI: ~27%
Underlying tokens and protocols:
Tokens: GLP (index token), ETH (reward token)
Protocols: GMX
Strategy pros
High and fully sustainable yield: 100% of the 30+% annual yield received by GLP holders is denominated in ETH.
Exposure to ETH and BTC growth: GLP is a soft long for both these tokens when users enter GLP with USDC and soft-short when users enter the position with BTC or ETH. In other words, due to the index composition (50% USDC), when one enters the index for BTC or ETH, one will automatically obtain exposure (unwanted or not) to USDC (hence the name “soft short”). Similarly, due to the index composition (25% ETH, 25% BTC), when investors enter GLP via USDC (or any other stable), they receive a 25% exposure to ETH and a 25% exposure to BTC.
Reasonably low risk: historical trader performance on GMX indicates that traders incur losses, which results in gains for GLP holders. For example, over the past year, GLP’s net earnings due to traders’ net losses have amounted to $36M. Unlimited capacity: GLP pool on Arbitrum is around $279M in TVL.
Strategy cons
Exposure to other assets: GLP is not the same as a single-sided liquidity provision due to its index nature. When depositing their token of choice, investors will inevitably gain exposure to other tokens in the index. If one of the tokens in the index loses its value, all else held equal, GLP will lose value too.
Liquidity provisioning in GLP is not delta neutral: trader profits will incur net losses on the GLP index, resulting in the potential loss of funds for investors.
Tips on how to integrate GLP into your portfolio
Risks and ways to hedge against them
Long bull or bear market trends (low-risk): this will result in net losses for GLP (due to a higher probability of trader profits). The best way to hedge this risk is by entering directional positions (e.g., soft-long or soft-short on the Algoo Strategies platform). The key thing to remember is that this risk is very low, as traders, on average, tend to yield losses in any market condition.
Exposure to BTC and ETH (medium-risk): for investors swapping into GLP with stablecoins. This is only a risk for users looking to short these two assets or remain delta-neutral. To hedge this risk, we suggest users use our soft-short strategy (SSETH). This will hedge the risk for ETH. Unfortunately, for BTC, users will have to short it on an external platform to mitigate this risk.
Shorting BTC and ETH risk: for investors purchasing GLP with BTC or ETH (medium-risk). To hedge this risk, an investor could open a long position by buying spot BTC and/or ETH and staking them on Algoo Strategies’ platform.
Fees
Performance fee: 10% of weekly profit (only if the strategy has generated profit); fees are deducted directly from the strategy shares each week.
Strategy address: https://debank.com/profile/0x152cc9606f4dc55f632f04a0c71e846bc190abaf
Maximum capacity: $10,000,000
SYNTHETIX DEBT HEDGE INDEX
This strategy mirrors the composition of the Synthetix Debt Pool, enabling users to hedge their Active Debt exposure with low risk. This strategy tracks both L1 and L2 debt pools. Liquidation events are not hedged, but will be returned to stakers in the form of escrowed SNX.
Full description
The Debt Mirror Pool token is a tool that replicates the payoff of the Synthetix Debt Pool, or the Synthetix debt distribution here: https://stats.synthetix.io/ - enabling users to hedge their Active Debt exposure. 1 sUSD worth of dSNX pool tokens hedges 1 USD worth of active debt.
All Synthetix currency positions (sUSD, sEUR, sJPY, etc.) are combined and mirrored into a single position of USDC. Currently, the pool holds WETH for sETH, WBTC for sBTC and LINK for sLINK. Positions with less than 1% weight are not considered. dUSD is a stable coin yield pool. The dUSD token will appreciate in price via LP fees and harvesting the rewards (ATM BAL). The performance mining rewards are extra on top of that, which currently include DHT, MATIC, and 1inch.
At a fixed time interval, a bot checks the SNX debt distribution and calculates new target allocations. It does this by reading the total supply from different Synthetix assets, calculating the USD value and percentage of the total supply of all assets, and establishing new weights. ETH locked in the EtherWrapper contract are deducted from the sETH supply, which currently results in a net short position of sETH. Currently, the pool holds USDC and WBTC as deposits on Aave, LINK as a normal asset position, and WETH as a debt position on Aave.
The bot calculates the percentages of current long/short positions, taking into account the deposited/borrowed assets on Aave and assets outside of Aave (current allocation). The bot compares current and target allocation and rebalances if the difference exceeds a defined threshold (currently set to 2%).
Rebalancing of asset outside of Aave (e.g. LINK):
Decrease allocation:
Trade asset into USDC on 1Inch
Deposit USDC into Aave
Increase allocation:
Withdraw USDC from Aave
Trade USDC into asset on 1Inch
Rebalancing of deposit asset (e.g. WBTC):
Decrease allocation:
Withdraw asset from Aave
Trade asset into USDC on 1Inch
Deposit USDC into Aave
Increase allocation:
Withdraw USDC from Aave
Trade USDC into asset on 1Inch
Deposit asset into Aave
Rebalancing of borrowed (short) asset (e.g. WETH):
Decrease allocation:
Withdraw USDC from Aave
Trade USDC into asset on 1Inch
Repay borrowed asset on Aave
Increase allocation:
Borrow more of the asset on Aave
Trade asset into USDC
Deposit USDC into Aave
Estimated returns and source of yield
The target ROI for this strategy is 60%, but it an vary depending on factors such as market conditions, trading fees.
Debt pool rewards: The Synthetix protocol incentivizes debt pool participation by rewarding holders of Debt Pool tokens. These rewards can come in the form of SNX tokens or other protocol-generated fees. The pool's returns can be derived from these rewards, which are distributed proportionally to the pool's token holders.
Price movements of underlying assets: The Synthetix Debt Hedge Index pool holds a position in various assets such as WETH, WBTC, and LINK, which replicate the exposure of the Synthetix Debt Pool tokens. If the prices of these underlying assets experience price appreciation, the pool's value will also increase, resulting in capital gains for the pool's participants.Underlying coins and protocols
Coins: USDy, USDC, WBTC, WETH, sUSD, sLink
Protocols: Optimism
Strategy pros
Hedging against debt risks: One of the main benefits of the Synthetix Debt Hedge Index pool is that it provides a hedging strategy against potential debt risks in the Synthetix protocol. This can help investors protect their investments and potentially avoid losses in the event of a default or other issues related to debt.
Access to protocol rewards: Holding the Synthetix Debt Hedge Index pool tokens provides exposure to potential protocol rewards, such as SNX token rewards or other fees generated by the Synthetix ecosystem. This allows participants to benefit from the growth and success of the Synthetix protocol.
Automation: The pool operates based on predefined algorithms and smart contracts, automating various aspects of the investment process. This automation ensures efficient execution of trades, rebalancing, and participation in reward distributions, reducing the need for manual intervention.
Strategy cons
Dependence on the Synthetix ecosystem: The performance and stability of the Synthetix protocol can impact the performance of the Synthetix Debt Hedge Index pool. Any issues or challenges faced by the Synthetix ecosystem, such as technical problems, regulatory hurdles, or changes in market conditions, could affect the overall performance of the pool.
DeFi Protocol Risk. Algoo startegies builds strategies on top of fully audited protocols that have proven their sustainability, however, protocol vulnerabilities still exist. While Midas monitors all positions 24/7, systematic DeFi risk is shared with investors.
Limited asset selection: The Synthetix Debt Hedge Index pool's exposure is limited to specific synthetic assets within the Synthetix ecosystem. This means that participants may not have access to the full range of assets available in the broader market, potentially limiting their investment opportunities.
Investment tips on how to blend this strategy into your portfolio
Fees
Performance fee: 20% of weekly profit (only if the strategy has generated profit); fees are deducted directly from the strategy shares each week.
If the user exits the investment strategy before the settlement day, then we calculate the difference between the current price and the price of the last settlement period and take 20% of the profit. If there is no profit, then the user does not pay performance fee.
Performance fee = [Current price - last price] * 0.2 Swap Fee
From Stables to Strategy — 0% platform fee + ~0.2% market spread
From ETH to Strategy: 0.3% platform fee + ~0.2% market spread
From BTC to Strategy: 0.3% platform fee + ~0.2% market spread
From all others to Strategy — 0.2% platform fee + ~0.2-0.8% market spread
Strategy address: https://debank.com/profile/0x7a7c5a94495c9c9c60d88a85f7e43b657c3b6b5c
Maximum capacity: $15,000,000
xETH Stable Yield
The xETH Stable Yield Strategy is a DeFi strategy designed to generate a target ROI of 45% through a combination of stablecoin yield and ETH price appreciation. Utilizing a diversified approach across multiple protocols and networks, this strategy aims to deliver consistent returns while maintaining a balanced exposure to ETH.
Full Description
Similar to Yield-Aggregating Pools (YAPs), an investment in this strategy will be composed of "shares". The strategy splits investments across different protocols to optimize yield and manage risk.:
Compound (47%):
USDbC on Base: 23.5%
USDC on Arbitrum: 23.5%
Provides stable and secure interest on USDbC and USDC deposits, offering consistent returns.
Convex (25%):
USDC.e/USDT LP on Arbitrum: Leverages Convex to enhance yield from the USDC.e/USDT liquidity pool.
Hop Protocol (23%):
USDC LP on Arbitrum: Uses Hop Protocol to provide liquidity for USDC, reducing risks associated with cross-chain bridge protocols.
Half of the BAL pool is converted to ETH and then provided as supply tokens to Aura Finance. These supply tokens are used as collateral for creating a 2x leveraged position on a basket of ETH-BAL liquidity pools. On average, a 10% increase in the price of ETH results in a 7.9% growth of the strategy's price due to the conversion of BAL to ETH. This strategy captures 45% ROI from fees and rewards, making it an excellent way to diversify a portfolio during choppy, bearish markets while maintaining exposure to potential crypto market rallies.
Estimated Returns and Sources of Yield
Target ROI: 45%
Sources of Yield:
Fees from ETH-USDC Liquidity Pool (~13% ROI)
Trading Fees from Uniswap (~10% ROI)
Aura Leverage: Yields are doubled by leveraging Aura Finance's protocols.
Borrow APR for Leverage (0.8%): Subtracted from the overall yield.
Underlying Coins and Protocols
Coins and Tokens: USDbC, USDC, USDC.e, USDT, BAL, ETH
Protocols: Compound, Convex Finance, Hop Protocol, Aura Finance
Strategy Pros
Efficiency: Combines high yields with balanced ETH exposure for efficient returns during flat and bullish markets.
Liquidity: Allows investors to enter and exit the strategy at any time with low fees.
Transparency: Enables tracking of strategy performance via on-chain analytics.
Strategy Cons
Limited Availability: Strategy availability is based on existing liquidity. Additional balances are added regularly to increase liquidity.
DeFi Protocol Risk: Despite using fully audited protocols, vulnerabilities still exist. Systematic DeFi risks are shared with investors.
Market Downtrend: Declines in ETH prices will affect the strategy's value.
Investment Tips
Flat Markets: Utilize this strategy to capture attractive yields while maintaining ETH exposure.
Diversification: Combine with other strategies, such as Algoo Strategies’ “Soft Short”, to balance long and short positions.
Stablecoin Allocation: Enter with stablecoins during market dips for a medium-risk, high-yield vehicle, and rebalance as needed.
Risks and Mitigation
Liquidation Risk (Low): Monitored closely, with liquidation occurs only if ETH’s price decreases by 57% from the entry position.
Impermanent Loss (Medium): Reduced due to the presence of USDC collateral; hedging with long positions on ETH can balance exposure.
Systematic DeFi Risks (Medium): Real-time alerts and proactive monitoring help mitigate risks. The strategy can exit to stablecoins if necessary.
Fees
Performance Fee: 9% of weekly profit, deducted from strategy shares each week.
Early Exit Fee: Calculated as 15% of the profit based on the difference between the current price and the last settlement period price.
Performance fee=(Current price−Last price)×0.09
Strategy Address:https://debank.com/profile/0x89f67f3054bfd662971854190dbc18dcabb416f6
Maximum Capacity: $1,000,000
xETH Wrapped LP
The xETH Wrapped LP Strategy leverages the liquidity and yield potential of ETH staking derivatives on Ethereum. By facilitating trades between wstETH, sfrxETH, and rETH, this strategy aims to generate yield through swap fees and additional rewards from Aura’s governance tokens, targeting a robust ROI while maintaining exposure to the leading ETH staking solutions.
Full Description
This strategy invests in the liquidity pools of three primary ETH staking tokens: wstETH (wrapped staked ETH from Lido), sfrxETH (Frax’s staked wrapped ETH token), and rETH (staked ETH token from Rocket Pool). The strategy's core mechanics involve borrowing, liquidity provision, and staking across Balancer and Aura protocols.
Yield Generation: The yield in this pool is primarily derived from swap fees paid by traders during exchanges between the three ETH staking derivatives.
Aura Boost: Additional yield is generated due to Aura’s significant holdings of BAL (Balancer governance tokens), which enhances returns for liquidity providers.
Balancer Pool: Borrowed ETH is deposited into the Balancer wstETH/ETH pool.
Staking LP Tokens: LP (liquidity provider) tokens obtained from the Balancer pool are staked on Aura to earn incentive rewards.
The strategy also taps into the composable stable pool factory v5 under BIP-451 on Optimism, further diversifying and optimizing yield opportunities.
Estimated Returns and Sources of Yield
Target ROI: 45%
Sources of Yield:
Swap Fees: Generated from trades between wstETH, sfrxETH, and rETH.
Aura Incentives: Enhanced returns due to Aura’s BAL holdings.
Incentive Rewards: Harvested from staking LP tokens on Aura.
Underlying Coins and Protocols
Coins and Tokens: wstETH, sfrxETH, rETH, ETH, BAL
Protocols: Balancer, Aura Finance, Notional Finance, Lido, Frax, Rocket Pool
Strategy Pros
Efficiency: High yields combined with diversified exposure to leading ETH staking solutions.
Liquidity: Allows investors to enter and exit the strategy at any time with low fees.
Transparency: Enables tracking of strategy performance via on-chain analytics.
Strategy Cons
Limited Availability: Strategy availability is based on existing liquidity. Additional balances are added regularly to increase liquidity.
DeFi Protocol Risk: Despite using fully audited protocols, vulnerabilities still exist. Systematic DeFi risks are shared with investors.
Market Downtrend: Declines in ETH prices will affect the strategy's value.
Investment Tips
Risks and Mitigation
Liquidation Risk (Low): Monitored closely, with liquidation occurring only if ETH’s price decreases significantly from the entry position.
Impermanent Loss (Medium): Reduced due to the presence of multiple ETH staking tokens; hedging with long positions on ETH can balance exposure.
Systematic DeFi Risks (Medium): Real-time alerts and proactive monitoring help mitigate risks. The strategy can exit to stablecoins if necessary.
Fees
Performance Fee: 15% of weekly profit, deducted from strategy shares each week.
Early Exit Fee: Calculated as 15% of the profit based on the difference between the current price and the last settlement period price.
Strategy Address:https://debank.com/profile/0x6d5dda04760f0515dc131ff4df76a5188ffcdfcb
Maximum Capacity: $4,000,000
BTC Momentum Liquidity (BML)
Overview
DeFi strategy that captures Bitcoin price trends (target 20%–35% ROI) through Bitcoin-backed liquidity provision on Aerodrome Finance. The strategy uses sentiment-based momentum analysis and algorithmic execution to optimize returns from tBTC-cbBTC pools, combining BTC exposure with yield generation.
Full Description
Similar to YAPs, an investment into this strategy is composed of "shares." The strategy deploys tokenized Bitcoin (tBTC and cbBTC) into a liquidity pool on Aerodrome Finance, where rewards are earned in AERO tokens. These rewards are auto-compounded through Beefy Finance, increasing the strategy’s share value over time.
The strategy also integrates real-time sentiment analysis (from Twitter, Reddit, and financial news) with momentum trading algorithms that operate across CEXs and DEXs. Trades are executed based on trend indicators, news sentiment, and historical price patterns. Risk management tools like stop-loss and trailing stops are built into the algorithmic layer to reduce volatility risk.
By bridging Bitcoin liquidity into Ethereum via Threshold Network and Coinbase’s cbBTC, this strategy allows BTC holders to gain yield exposure without giving up core BTC exposure.
Estimated Returns and Source of Yield
[Liquidity rewards from tBTC-cbBTC pool (10%–15%) + auto-compounded AERO incentives (5%–10%) + sentiment-driven trades (5%–10%)] = 20%–35% ROI annually
Underlying Coins and Protocols
Coins and tokens: BTC, tBTC, cbBTC, AERO
Protocols: Aerodrome Finance, Beefy Finance, Threshold Network, Coinbase
Strategy Pros
Integrated Exposure: Combines Bitcoin price gains with yield from liquidity pools.
Optimized Yield Generation: Auto-compounding maximizes returns over time.
Proactive Trading: Reacts quickly to sentiment shifts and market changes.
Secure Infrastructure**: Deployed on fully audited, transparent DeFi protocols.
Strategy Cons
Dependence on DeFi Protocols: Relies on the security and performance of liquidity and trading platforms.
Exposure to Impermanent Loss: Potential for reduced profits in liquidity pools if paired asset prices diverge significantly.
Requires Active Monitoring: Performance depends on continuous adjustments and updates to the strategy.
Investment Tips
Diversify with Stablecoin Strategies
Combine with BTC Delta/Asset Neutral for a stable return during periods of market volatility.
Combine with Defensive Strategies
Use alongside BTC Volatility Shield Strategy to mitigate the impact of extreme price swings.
Integrate into Balanced Portfolios
Allocate alongside other high-growth strategies for a diversified portfolio with a mix of risk and reward.
Risks and Hedging
Market Risk (High): Mitigated by dynamic stop-loss and trailing stop tools.
Protocol Risk (Medium): Aerodrome and Threshold are audited but evolving. Algoo monitors all on-chain risks.
Impermanent Loss (Medium): Minimized through reinvested rewards and tight BTC correlation between tBTC and cbBTC.
Fees
Performance Fee: 20% of profits, applied only when the strategy generates positive returns.
Early Exit Fee: A fee is charged on profits realized before the weekly settlement period.
Maximum Capacity
$25,000,000 (scalable based on liquidity demand and protocol capacity)
Strategy address: https://debank.com/profile/0xb57ec27f68bd356e300d57079b6cdbe57d50830d
BTC Yield Aggregator Strategy (BYAS)
Overview
DeFi strategy that generates yield (target 10%–14% ROI) through WETH/wBTC or WETH/cbBTC liquidity provisioning on Aerodrome Finance. The strategy converts Bitcoin into tokenized forms (wBTC or cbBTC) to capture AERO incentives and auto-compounded rewards while maintaining low-risk exposure. Ideal for users seeking passive BTC-backed income.
Full Description
BYAS operates using tokenized Bitcoin assets (wBTC or cbBTC) paired with WETH to provide liquidity on Aerodrome Finance. Deposits are converted to a 50:50 split and deployed in high-liquidity pools like WETH-wBTC or WETH-cbBTC. Investors receive LP tokens, which are staked to earn AERO rewards.
All earned AERO tokens are harvested periodically and reinvested using Beefy Finance vaults to enhance returns via auto-compounding. This increases share value and long-term APY while minimizing manual effort.
The strategy is modular and scalable, suitable for both retail and institutional investors. With a focus on capital preservation and consistent yield, BYAS is a strong addition to portfolios seeking exposure to Bitcoin without price speculation.
The strategy’s design also benefits from vote-based AERO reward boosts during weekly epochs, adding a dynamic layer of optimization.
Estimated returns and source of yield
[Swap fees from WETH/BTC trades (4%–6%) + AERO incentives (6%–8%) + auto-compounding] = 10%–14% ROI
Underlying coins and protocols
Coins and tokens: wBTC, cbBTC, WETH, AERO
Protocols: Aerodrome Finance (Base Layer 2), Beefy Finance (auto-compounding), Coinbase (cbBTC issuance)
Strategy Pros
Low-Risk Exposure: Funds are secured in highly reputable DeFi protocols with robust security measures.
Tokenized Bitcoin assets provide consistent yields while maintaining a 1:1 backing with BTC.
Enhanced Yields via Compounding: Auto-compounding mechanisms reinvest rewards, boosting long-term returns.
Scalability: Modular structure allows participation for both small and large investors.
Dynamic Rewards: Pools with higher votes during reward epochs offer enhanced earning potential, providing an opportunity to maximize returns.
Strategy Cons
Dependence on Voting Mechanisms: Reward rates depend on pool votes, which may fluctuate based on community participation and market trends.
DeFi-Specific Risks: Potential vulnerabilities in smart contracts or governance mechanisms within DeFi protocols.
Impermanent Loss: Liquidity pools can experience impermanent loss if paired asset prices diverge significantly.
Investment Tips for Portfolio Integration
Use BYAS as a stable BTC yield position when looking to earn passively without price exposure.
Pair with ETHx Infinity Vault or Market-Neutral ETH Pairing to diversify yield streams and reduce correlation risk.
Ideal for conservative or balanced portfolio tiers where capital preservation and passive yield are priorities.
Track AERO voting activity weekly to align with top-performing LPs.
Risks and Ways to Hedge
Smart Contract Risk (Low–Medium): Algoo mitigates through real-time tracking, and vault assets can be exited in response to protocol issues.
Reward Fluctuations (Low): Yield may vary depending on pool votes. Strategy monitors vote trends and reallocates liquidity if needed.
Impermanent Loss (Medium): BTC/ETH divergence may affect LP value. Hedge with directional BTC or ETHy exposure to offset losses. Regulatory Risks: cbBTC issued by Coinbase is regulated, but Algoo monitors evolving legal frameworks and adjusts accordingly.
Fees
Performance fee: 10% of weekly profit (applied only on realized gains). Fees are reflected in the strategy’s token price, not the number of BYAS tokens held.
Performance fee = Currentshareprice–Previousprice × 0.10
Strategy address
cbETH FUSION VAULT (CFV)
DeFi strategy that generates yield (target 20%–30% ROI) through cbETH/ETH liquidity provisioning on Alien Base DEX. The strategy takes advantage of Coinbase's liquid staking derivative, cbETH, paired with ETH to deliver consistent returns with minimal impermanent loss. Boost Tier users receive an additional +5.40% APY on ETH deposits.
Full description
Similar to YAPs, an investment in this strategy is composed of “shares.” The strategy is denominated in ETH, and deposits are split between ETH and cbETH (Coinbase staked ETH), forming a 50:50 position in the cbETH/ETH liquidity pool on Alien Base DEX. This pool captures trading volume from users swapping between cbETH and native ETH, generating consistent swap fees due to their tight price correlation.
The LP tokens received are staked to earn ALB token rewards, distributed by Alien Base as an incentive for liquidity provision. All rewards are periodically harvested and reinvested into the strategy to increase share value.
Gold Tier users receive an additional +5.40% APY on their ETH portion through Algoo Strategies’ internal Boost mechanism. This enhances returns while maintaining full exposure to ETH’s long-term growth.
The strategy’s design minimizes volatility and impermanent loss, making it an attractive alternative to traditional staking or holding ETH passively.
Estimated returns and source of yield
[Trading fees from cbETH/ETH swaps (8%–12%) + ALB rewards (10%–18%) + ETH Boost (5.4%)] = 20%–30% ROI
Underlying coins and protocols
Coins and tokens: ETH, cbETH, ALB Protocols: Alien Base DEX (Base Layer 2), Coinbase (cbETH issuance)
Strategy pros
Correlated Assets: cbETH tracks ETH closely, resulting in minimal impermanent loss.
Multi-layer Yield: Combines swap fees, ALB incentives, and ETH Boost rewards.
Passive Strategy: Fully automated and compounding; no user actions required.
Low Gas Environment: Deployed on Base Layer 2 for cost efficiency.
Boost Advantage: +5.40% APY Boost for Gold Tier ETH deposits.
Strategy cons
Protocol Maturity: Alien Base DEX is less battle-tested than other DEXs.
Reward Variability: Incentives and trading volume may fluctuate.
Platform Dependency: The Entire yield source depends on Alien Base infrastructure.
Investment tips on how to blend this strategy into your portfolio
Use this strategy as a low-risk ETH yield vehicle during periods of consolidation or low volatility.
Pair with ETHx Infinity Vault to capture directional ETH upside while compounding returns in both correlated and yield-optimized positions.
Combine with Stablecoin Yield Aggregator or ETHy for reduced exposure volatility.
Allocate as a core passive ETH position in a multi-strategy Gold Tier portfolio.
Risks and ways to hedge against the presented risks
Smart Contract/Protocol Risk (Medium Risk): Alien Base is relatively new and not widely audited. Algoo mitigates this through monitoring and real-time alerts. Strategy can be executed into stables in case of detected anomalies.
Reward Dilution (Low Risk): ALB token emissions may reduce over time. Strategy yield automatically adjusts and may rebalance to alternate pools in the future.
Impermanent Loss (Low Risk): cbETH and ETH are tightly correlated. However, large depegs between cbETH and ETH could introduce temporary loss. Users can hedge with directional ETH or ETHy.
Fees
Performance fee: 15% of weekly profit (only if the strategy generates profit); fees are deducted from strategy shares. The number of CFV tokens remains the same, but the token price reflects the net after-fee value.
If the user exits before the settlement day, performance fees apply on realized profits.
Performance fee = [Current price - last price] * 0.15
Strategy address
https://debank.com/profile/0xcbethfusionvaultbasechainexample123456
StableYield Allocator (SYA)
Passive stablecoin strategy offering low-risk, hands-free income through ListaDAO’s pUSDT vault. Designed for Gold Tier users, SYA targets 5.2%–7.8% APY through algorithmic lending optimization, with no lockups or manual interactions.
Full description
StableYield Allocator (SYA) is a capital-efficient strategy optimized for investors seeking stable, low-volatility income on-chain. Built around ListaDAO’s automated vault infrastructure, SYA allocates capital denominated in pUSDT across integrated lending markets, where it earns interest from borrowers in real time.
The strategy mechanism is fully automated and proceeds as follows: Users deposit pUSDT into Algoo’s SYA vault, which is routed through smart contracts to ListaDAO’s pUSDTVault. ListaDAO then dynamically reallocates funds across integrated lending markets, optimizing deployment based on real-time risk and APY data. Interest from borrowers accrues automatically and is reinvested through compounding logic to enhance share value.
Withdrawals are instant under normal liquidity conditions. The vault maintains a liquidity buffer for user exits; if the buffer is temporarily depleted, withdrawal requests enter a rolling queue and are processed as liquidity becomes available.
Unlike traditional staking or liquidity provision strategies, SYA avoids exposure to price volatility or impermanent loss. It is ideal for investors who prioritize capital preservation while earning yield backed by real economic activity. The vault operates 24/7 without the need for user intervention.
Estimated returns and source of yield
[Borrower interest + Real-time rebalancing + Auto-compounding] = 5.2% – 7.8% APY
Underlying coins and protocols
Coins and tokens: pUSDT Protocols: ListaDAO and integrated lending markets
Strategy pros
Stablecoin-based: Lower volatility than crypto-native strategies.
Fully Automated: No manual interaction required; earnings are auto-compounded.
Instant Access: Deposits and withdrawals are processed with minimal delay.
Dynamic Allocation: Rebalances in real-time to maximize APY.
Gold Tier Optimized: Designed to offer enhanced reliability for higher-tier users.
Strategy cons
APY Fluctuation: Yields may vary with protocol demand and market conditions.
Protocol Reliance: Stability depends on ListaDAO’s contract security.
Stablecoin Peg Risk: Potential pUSDT depeg events may affect capital.
Investment tips on how to blend this strategy into your portfolio
Use this strategy as a core stablecoin yield vehicle for preserving capital while earning.
Pair with directional strategies like Soft Long or BYAS for added upside.
Ideal for parking capital during uncertain market periods without sacrificing yield.
Combine with ETH yield strategies to balance exposure to volatile and non-volatile assets.
Risks and ways to hedge against the presented risks
Protocol Risk (Low–Medium Risk): ListaDAO is audited. Algoo monitors performance and may exit positions to stables in emergencies.
Liquidity Constraints (Low Risk): Exits depend on vault liquidity. A rolling queue mechanism supports orderly withdrawals.
Market Yield Compression (Medium Risk): APY may decline due to reduced borrowing demand. Strategy dynamically reallocates to optimize returns.
Stablecoin Depeg (Low Risk): If pUSDT loses its peg, capital value may drop. Monitoring tools alert for swift response.
Fees
Performance fee: 10% of weekly profit (only if the strategy generates profit); fees are deducted from strategy shares. The number of SYA tokens remains the same, but the token price reflects the net after-fee value.
If the user exits before the settlement day, performance fees apply on realized profits.
Performance fee = [Current price - last price] * 0.10
Strategy address
https://debank.com/profile/0x1b0d195d4303a0e376aecf27cbe80bb56ce6e074
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