Camelot Stable Vault
Providing liquidity on a DEX without hedging is a bullish bet that exposes liquidity providers to losses when the price of the provided asset goes down. However, with our hedge control strategy, we analyze the market trend based on a 3-day moving average and adjust our hedge position accordingly.
VULNERABLE ON DOWNWARD PRICE MOVEMENT
MITIGATE LOSSES CAUSED BY PRICE MOVEMENT
Smart Liquidity determines the price range for providing liquidity on behalf of liquidity providers. In order to take advantage of the capital efficiency offered by Uni v3, the vault aggressively sets the price range using a delta hedging strategy that mitigates the impact of price volatility.
KEEP LIQUIDITY CONCENTRATED AND EARN FEES
WIDEN LIQUIDITY POSITION BUT STILL EARN FEES WITH A HIGH TIER
When the asset price goes out of settings, the deployed liquidity no longer earns trading fees from the Uni v3 pool. In such a case, the vault rebalances to set new ranges and start earning again.
REBALANCE RANGE SETTINGS WHEN PRICE MOVES BEYOND A THRESHOLD
UPDATE SETTINGS WEEKLY BASED ON MARKET CONDITIONS
How it works
- Deposit USDC.e into the Orange ETH-USDC.e vault.
- A part of the deposit will be supplied to a lending protocol to make a short position for ETH.
- A liquidity pair is created and deployed to an ETH-USDC.e pool on Uniswap V3.
- Your funds could appreciate over time as the Orange ETH-USDC.e accrue fees.
- You can withdraw all or part of your funds. You can initiate a withdrawal anytime.
- Orange takes a short position with a lending protocol by paying interest.
- Impermanent loss(IL) and Loss vs Rebalance(LVR) are the major risks when providing a concentrated liquidity position to Uniswap V3.
- Orange could experience a loss if IL, LVR, or interest for the hedge is higher than the earned fees.
- The Hedge control strategy might not always capture the right market trend if there is a sudden change in the market trend and thus might result in the position’s IL.
Smart Contract Risks
- Orange takes security seriously. Our smart contracts have been audited by WatchPug. However, smart contracts still have risks, and we encourage users to only deposit funds you can afford to lose.
- Orange ETH-USDC.e interacts with multiple protocols and is exposed to other smart contracts' security standards.