How AQTIS mitigates risk

As investors with years of experience in crypto, we’ve seen how DeFi projects with great promise, can quickly become nightmares as market conditions change.

This is why AQTIS has created a number of unique features to its LSTs that help offset some of the risk associated with taking part in DeFi.

Ecosystem Liquidity Insurance Fund (ELIF)

The Ecosystem Liquidity Insurance Fund, or ELIF, plays a pivotal role in fortifying the stability and security of the AQTIS ecosystem.

It serves as a strategic reservoir for excess yield, with the aim of accumulating backup liquidity equivalent to as much as 40% of the TVL in the ecosystem. Excess yield within our ecosystem is directed towards the ELIF to amass backup liquidity, aimed at reaching up to 40% of the total LST TVL.

This reserve is strategically designed to safeguard AQTIS LST-holders, ensuring coverage for at least one year of APY and a potential 20% up to 30% drawdown.

Security at source

It's crucial that no smart contract can directly make claims or access the ELIF. This important security measure guarantees that even in the event of a potential external exploit through the Yield Distribution Smart Contracts (YDSC) claiming functions, the maximum risk for AQTIS and its users is limited to one month's worth of rewards.

Permissionless Exits

Our LSTs are designed to ensure any holder can exit quickly, and safely. This is why AQTIS LSTs have a liquidity pool available permanently.

Details of the ratio for how much liquidity is held in reserve for this can be found below.

qETH

  • 10% LP

  • 30% - 60% ELA

  • 30% - 60% Quant Tech

QSD

  • 10% LP

  • 30%-40% ELA

  • 40%- 50% Quant Tech

QRT

  • 30% LP

  • 10% - 30% ELA

  • 40% - 60% Quant Tech

With some DeFi projects, details of these pools may not be available. For any DeFi user, knowing that there is a liquidity pool available, or that there are tools in place to safeguard yield are vital when it comes to making a decision to take part.

Last updated