Exploring the balance between Performance, Position Sizing and Slippage when building a robust ecosystem
Transparency is at the heart of everything we do at AQTIS. In the DeFi world, there are always outlandish claims of performance, without the data to verify how that is achieved.
This is why this document is all about explaining how AQTIS achieves its yield in detail. In order to understand how AQTIS works, there are several key ideas we’ll walk you through first.
These are:
  1. 1.
    Testing Performance - to ensure our investing strategies deliver the results we need
  2. 2.
    Total Value Locked (TVL) - the amount of capital deployed into our LSDs
  3. 3.
    Liquidity Utilization - how much of the capital we can use to improve our performance.
  4. 4.
    Position Sizing - how much capital can be deployed to specific marketplaces or strategies.
  5. 5.
    Slippage - how costly it becomes to enter and exit positions.
When AQTIS built its investment strategy, it was looking for the right balance between the most efficient use of capital, the speed by which it can enter and exit a trade - and thus slippage - and how much it needs to hold back in liquidity to allow proper functioning of the ecosystem.
The below numbers are examples of how this works, rather than the exact amount of capital AQTIS deploys.
Last modified 3mo ago