Systemic Risk

There are risks associated with crypto. In the case of DeFi, there is always a risk the price of a token falls so much, liquidity dries up and holders are trapped in their assets.

AQTIS has been designed to allow price fluctuations to exist, while still being able to maintain liquidity.

One of the key ways we do this is through the quant tech at the heart of what we do.

We have battle-tested multiple investment strategies to maximize profitability, which is then used to generate rewards, maintain price, and ensure liquidity.

Even in the event of a drawdown of 30%, our financial modeling allows us to cover liquidity and yield across all three of our LSTs.

We have two key systems in place to protect the pegs of our tokens to their yield:

  • Through providing exit liquidity in the LPs, the qETH peg is maintained by the qETH liquidity provider (LP) directly.

  • The ELIF acts as a backup pool for all three LST pools whenever one of the pools is being drained. It essentially acts as a buffer between the quant tech and the LPs. We want instant liquidity demand to be provided by the ELIF to make sure that the quant tech doesn't have to exit positions and thus incur losses. This reduces systemic risk.

Last updated