Stablecoin Portfolio Strategy
Risk Category: Low
Vault Information
Maximum Fund Size: 1,000,000 $USDC Asset Token: $USDC ShareToken: $StableTEA $StableTEA Token contract Address: 0xb54E2764bEF6994245527f75Eb8f180c484C404d Deposit and Withdrawal Period: Tuesday 17:00 UTC+8 – Monday 17:00 UTC+8 Locked Period: Monday 17:00 UTC+8 – Tuesday 17:00 UTC+8
Summary
Stablecoin Portfolio Strategy performs a combination of (mostly) stablecoin LPing on Uniswap V3, with (some) yield farming on other AMM protocols. Profits will mainly come from earning swap fees.
Teahouse uses a single-sided liquidity provision strategy for stablecoin pairs. Instead of the traditional LP price ranges that are set to contain the current spot price, the single-sided LP sets the price range above and below the current spot price so that only one token asset needs to be deposited as liquidity.
The main benefit of positioning our liquidity as two single-sided LP ranges to sandwich the spot price of the stablecoin pair is that it lowers the frequency of rebalancing, which in turn reduces the divergence loss (when impermanent loss becomes realized).
Please refer to Strategy Design for additional information.
Entry Requirements & Procedure
Must be a Teahouse HighTable OG or HighTable VIP NFT holder to participate in this fund. Non-holder whales with over 30K $USDC can open a ticket in Discord to discuss options.
Teahouse Hosts have put together a guide to walk users through how to deposit & withdraw funds.
If you request to deposit $StableTEA during Round X, your funds will enter the strategy in Round X+1, and you can claim $StableTEA in Round X+1 (or later).
The earliest you can request to redeem $StableTEA into $USDC will be in Round X+1, for the funds to be removed from the strategy in Round X+2. You will be able to claim the corresponding $USDC to your wallet in Round X+2.
If you do not redeem $StableTEA into $USDC, your funds will automatically continue into the following Rounds.
Risks
Third-Party Smart Contracts
Teahouse team has reviewed the smart contracts and/or their audit reports for various DeFi protocols used and confirmed that the smart contracts are authentic. Where applicable, third-party project owners have rectified issues found in the audit reports.
Market Conditions
Teahouse actively monitors the two main health factors of lending and staking protocols used: reserve level and protocol token price. In case of abnormal price volatility, the managed asset could experience a negative return.
Fees
Teahouse will assess Platform Fees, Management Fees, and Performance Fees for this strategy:
Platform Fees
0.1% to enter, 0.2% to exit.
e.g. I initially invested 1 $ETH, and upon exit, I have 1.5 $ETH. I will have paid 1 * 0.1% = 0.001 $ETH at entry and 1.5 * 0.2% = 0.003 $ETH at exit, for a total platform fee of 0.004 $ETH.
Management Fees
1.7% APY for Teahouse using exit value.
e.g. I invested 1 $ETH, and 1 week later, $TeaETH Token value increased to 150% of the original. When exiting after a week, I will incur 1.7% * 1.5 $ETH * 1/52 = 0.00049038461 $ETH. Alternatively, if it takes a full year to reach 150%, then I will incur 1.7% * 1.5 $ETH = 0.0255 $ETH.
Performance Fees
10% of profits made.
Disclaimers
Your friendly Teahouse Hosts would like to remind you that nothing contained on this website should be construed as financial advice. Teahouse makes no guarantees, express or implied. Please note the high-volatility nature of cryptocurrencies and DYOR. Be responsible for your actions and beware of scams.
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