AQTIS Documentation
  • Introduction to AQTIS
  • QSD
    • What is QSD?
    • How does the yield work?
    • How do I buy QSD?
    • How do I generate yield?
    • How do I claim my rewards?
    • A deeper dive into how the yield works
    • QSD pricing dynamics
    • Permissionless Exit
    • How do I sell my QSD?
    • Quant Technology’s role in QSD
    • Compliance
    • In summary
  • QRT
    • Securing the quant tech
    • How do I claim my rewards?
    • Claiming Mechanics
    • Quant Tech Liquidity Management
    • Difference with Other LSTs
    • Compliance
    • In Summary
  • Quant Tech & AI Explained
    • Why we use quantitative techniques
    • The Investment Strategy Portfolio
    • The AQTIS Investment Thesis
    • Why we use Machine Learning/AI in our portfolio
    • How we manage risk
    • Quant Tech Workflow
    • Quant Tech Strategies - the AQTIS secret weapon
    • Conclusion
  • Quant Performance
  • Tokenomics
  • Ecosystem Liquidity Insurance Fund (ELIF)
  • Ecosystem Liquidity Aggregator
  • Calculations
    • Testing Performance
    • Total Value Locked
    • Liquidity Utilization
    • Position Sizing
    • The impact of slippage on performance
    • In summary
  • What is the AQTIS Buyback Process?
  • AQTIS FAQ
    • AQTIS Protocol TL:DR
    • What are Liquid Staking Tokens (LSTs)?
    • What is Quant Trading?
    • What are Composable Yields?
    • What is the Token Buyback Process and how does it contribute to Token Value?
    • Can AQTIS Freeze My Assets? What about Permissionless Exits?
    • What is the Maximum Supply of the AQTIS Utility Token?
    • What is the Maximum Transaction Amount for the AQTIS Utility Token?
    • Where Can I Buy AQTIS LSTs and the AQTIS Token?
    • What Blockchain Network Does AQTIS Utilize?
    • Is AQTIS Regulation Compliant?
    • How Does AQTIS Generate Revenue?
    • How Are Liquidity Rewards Distributed in AQTIS?
    • What’s the Minimum Staking Period?
    • Where Can I Find the AQTIS Utility Token Contract Address?
    • Why has AQTIS capped the TVL?
    • Why implement LSTs? Why not simply use a reward pool where people can withraw their "dividends"?
    • Why is there a standardized yield?
    • Why is the team not doxxed?
    • Why is AQTIS sharing its strategies with the community?
  • Disclaimer
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Calculations

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. Testing Performance - to ensure our investing strategies deliver the results we need

  2. Total Value Locked (TVL) - the amount of capital deployed into our LSTs

  3. Liquidity Utilization - how much of the capital we can use to improve our performance.

  4. Position Sizing - how much capital can be deployed to specific marketplaces or strategies.

  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 updated 1 year ago