Yield Strategies

LP with hedging & staking

LevelQ deploys a volatile asset with a stablecoin into an Automated Market Maker pool. The volatile asset price exposure is hedge by borrowing half of its value on Money Market Protocol before LP.

If the AMM has staking pools, the LP are staked to earn additional rewards.

The APY of this strategy depends on couple of factors:

• Volumes

• How much is the borrow APR (depends on borrowing demand, driven by speculation)

• How much token reward are distributed to LP stakers.

This strategy earn in bull, bear and range market. It earn more in steady uptrend or range market with volatility.

Protocols needed on TON:

• AMM: Megaton Finance, STONfi, DeDust, Curdle/Torch Finance

• MMP: EVAA Protocol, DAO Llama

Carry trade arbitrage

LevelQ profit from interest rate discrepancies between assets of the same types: stablecoins, BTC and stable BTC, TON and TON LSTs. Volatile asset price exposure is hedged by borrowing. Using MMP protocol, deposit asset is used as collateral to borrow the same asset type but at a cheap rate, then use this borrowed asset to lend or simply swap it to the original asset, depending on which has the highest lending rate. The more MMP exist on the chain the more efficient the strategy is, the bigger the arbitrage opportunities are.

The APY of this strategy depends on couple of factors:

• Borrow rate

• Lending rate

• Available liquidity/Utilization rate

• Flash loan capabilities

• Various asset available of the same type

• How much token reward are distributed to lender and borrowers

Protocols needed on TON:

• MMP: EVAA Protocol, DAO Llama

Lending loops

LevelQ profit from interest rate discrepancies between assets in MMP. The volatile asset exposure is hedge by borrowing. Using MMP protocol, deposit asset is lent and used as collateral to borrow the asset that has the lowest borrow rate, then use this borrowed asset to lend and use it as collateral to borrow another asset at a low rate. The strategy calculate the most optimal path of lending and borrowing of asset that maximize its APY while taking into account asset usage restriction.

The APY of this strategy depends on couple of factors:

• Borrow rate

• Lending rate

• Available liquidity/Utilization rate

• Flash loan capabilities

• Various asset available

• How much token reward are distributed to lender and borrowers

Protocols needed on TON:

• MMP: EVAA Protocol, DAO Llama

Basis trade

LevelQ creates a long/short position on a volatile asset like TON, ETH, BTC or any other asset supported. The strategy will manage the delta exposure to be almost zero so that the strategy receives funding fee every hour whether from the long or from the short, depending on the bias of the traders.

The APY of this strategy depends on couple of factors:

• Funding fee

• Comissions open/close

• Trading rewards

• Volume on perps

Protocols needed on TON:

• Derivatives: Storm Trade, Ton-Hedge

• MMP: EVAA Protocol, DAO Llama

Leverage LP staking

LevelQ deploys eploys TON, TON LSTs with USDT into an Automated Market Maker. The LP is used as collateral to borrow more assets, leveraging up the position. The target leverage is between 2x and 3x using Money Market Protocol.

If the MMP has staking rewards, they are claimed and compounded.

The APY of this strategy depends on couple of factors:

• Volumes

• Share of liquidity used (how tight the range is compared to the price)

• How much is the borrow APR (depends on borrowing demand, driven by speculation)

• How much token reward are distributed.

This strategy earn in bull, bear and range market. It earn more in steady uptrend or range market with volatility.

Protocols needed on TON:

• AMM: Dedust, Storm Trade

• MMP: EVAA Protocol

CLP with hedging & staking

LevelQ deploys a volatile asset with a stablecoin into tight range of Concentrated Market Maker pool. The volatile asset price exposure is hedge by borrowing half of its value on Money Market Protocol before LP.

If the CMM has staking pools, the LP are staked to earn additional rewards.

The APY of this strategy depends on couple of factors:

• Volumes

• Share of liquidity used (how tight the range is compared to the price)

• How much is the borrow APR (depends on borrowing demand, driven by speculation)

• How much token reward are distributed to stakers.

This strategy earn in bull, bear and range market. It earn more in steady uptrend or range market with volatility.

Protocols needed on TON:

• CMM: Ion Finance

• MMP: EVAA Protocol, DAO Llama