Vault Strategy

Liquidity Farming Camelot

Currently, we are applying liquidity farming on two pairs:

  • wstETH - ETH

  • USDC.e - USDC

The APR structure of Camelot will depend on each pool with two types of rewards:

  • Market maker reward: paid in ARB and xGrail

  • Swap fees: paid in the coin added to the liquidity pool, for example, the USDC.e and USDC pair will pay in USDC.e and USDC in proportion to the position.

Wheel Strategy

The Wheel Strategy will consist of two main components to make a profit:

  1. Selling OTM Options: earning premium

  2. Covered Call/Put: hedging losses of OTM Options and earning profit by buying low and selling high ETH Spot.

The Options Strategy will include the following actions:

Strike Selection

The team has developed an algorithm using statistical methods, quantitative models, and years of experience operating an Options fund.

Wheel Strategy

Portfolio Rebalancing

Version 1:

According to academic papers, we usually use MA(200) as a market detection point:

  1. Uptrend: current daily price > MA(200)

    In the case of an uptrend market, adjust the vault ratio:

    • Spot: 60%

    • Cash: 20%

    • Options: 20%

  2. Downtrend: current daily price < MA(200)

    In the case of a downtrend, to reduce drawdown and earn additional premium as the spot no longer gains well, allocate the ratio:

    • Spot: 30%

    • Cash: 20%

    • Options: 50%

Vault Flow

PreviousPerformanceNextDevelopment progress

Last updated