Pseudo Market-Neutual LP Strategy

Risk Category: Medium

**This strategy has been deprecated**

Vault Infomation

Maximum fund size: 1,000,000 $USDC Asset Token: $USDC ShareToken: $OPTEA $OPTEA Token contract Address: 0x478aFa95F40bf5504cff32796c20bfD0B4e38330 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.


Teahouse’s Pseudo Market-Neutral LP Strategy is a concentrated liquidity provision strategy with hedging that runs on Perpetual Protocol V2 (Curie), which is in turn built on top of Uniswap V3. Our sophisticated strategy uses various inputs including volatility to dynamically adjust the LP ranges and hedge positions in order to maximize trading fees made while keeping IL contained. This results in a strategy that is market-proof, and can perform well even in bearish markets, as long as there are still trades being made.

Besides the normal trading fees received, our Pseudo Market-Neutral LP Strategy also profits from the $OP and $PERP rewards from Perpetual Protocol. Bolstering our already-impressive APY, these weekly rewards are immediately sold into $USDC upon receipt and put back into the fund for distributing to our ShareToken holders.

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 $USDC during Round X, your funds will enter the strategy in Round X+1, and you can claim $OPTEA in Round X+1 (or later).

  • The earliest you can request to redeem $OPTEA 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 $OPTEA into $USDC, your funds will automatically continue into the following Rounds.


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.

When providing concentrated liquidity, there is always the risk of incurring Impermanent Loss (IL), especially when the asset price moves out of LP range and does not return. In addition, an LP position may be liquidated if its margin ratio becomes too low due to reduced collateral from losses. Teahouse strategy mitigates the IL risk with hedging, while dynamically changing the LP range and watching the margin ratio closely to prevent liquidations.

Platform Rewards

Perpetual Protocol is currently incentivizing liquidity provision by distributing $OP and $PERP rewards each week. The three main factors that impact the reward yield are: LP price range set, other LP positions & volume, and $OP & $PERP price against $USDC. Of course there’s also the risk of the rewards running out. When Teahouse deems the strategy no longer profitable, we will close this fund and open new ones!


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, $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.


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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