Concentrated Liquidity Provision Strategy

Risk Category: High

**This strategy has been deprecated**

Vault Information

Maximum fund size: 1,000,000 $USDC Asset Token: $USDC ShareToken: $OPTEA+ $OPTEA+ Token contract Address: 0x9ed9c1C0F1c68666668A7aeDec5feC95abc7F943 Deposit and Withdrawal Period: Tuesdays 17:00 UTC+8 – Mondays 17:00 UTC+8 Locked Period: Mondays 17:00 UTC+8 – Tuesdays 17:00 UTC+8

This strategy generally performs well in a neutral or crab market by earning trading fees with minimum divergence loss.

Summary

This high-risk strategy is closely related to our original medium-risk Pseudo Market-Neutral Liquidity Provision Strategy, and shares a similar algorithm. However, because 100% of the fund is actively utilized and exposed to higher leverage and risks, the PnL will be magnified 4-5 times compared to that of the medium-risk version.

This strategy is designed for our HighTable Gamblers who have a higher risk-tolerance for potentially higher rewards.

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 1,000 $USDC, and upon exit, I have 1,500 $USDC. I will have paid 1,000 * 0.1% = 1 $USDC at entry and 1,500 * 0.2% = 3 $USDC at exit, for a total platform fee of 4 $USDC.

Management Fees

1.7% (Annualized) divide by 52 weeks to get weekly fees charged: 0.03269%

E.g., I invested 1,000 $USDC, and 1 week later, the $OPTEA+ token value increased to 150% of the original. When exiting after a week, I will incur 1.7% * 1,500 $USDC * 1/52 = 0.49038461 $USDC. Alternatively, if it takes a full year to reach 150%, then I will incur 1.7% * 1,500 $USDC = 25.5 $USDC.

Performance Fees

10% of profits made.

Disclaimer

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.